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G Sathish   17 June 2023

Are cranes used inside the factories (only) are liable for tax under the mv act

Please can any one clarify on the subject of tax for cranes operated inside the factory premises only.



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 1 Replies

T. Kalaiselvan, Advocate (Advocate)     17 June 2023

After an amendment in 2007 in section 194I, rent on plant, machinery or equipment is subject to TDS at the rate of 10%. Therefore, crane hire charges is subject to TDS under section 194I.

Also when one or more of the propelling or control elements are located in the cab of a lifting or handling machine mounted on a wheeled chassis, then it would be classified as a crane, otherwise it is a motor vehicle.

Whether used in global trade as a tool for loading cargo, or in the construction of buildings or large technical projects – cranes are among the most important mechanical devices in human development.

Thus it is not a motor vehicle hence the MV act may not be applicable to this machinery


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