Services of hiring of means of transport :
In case of services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, upto a period of one month. The place of supply shall be the location of the supplier of service – section 13(8)(c) of IGST Act.
The words ‘other than aircrafts and vessels’ means that hiring of vessels or aircrafts, irrespective of whether short term or long term, will be covered by the general provision, i.e. place of location of recipient of service. Hiring of yachts would continue to be covered by section 13(8)(c) of IGST Act – para 4.1.3(iii) of MF(DR) letter No. 334/15/2014-TRU dated 10-7-2014
In Cookies World Vertriebsgesellschaft mbH iL v. Finanzlandsdirektion fur Tirol (2013) 38 STT 561 (ECJ), assessee leased car from Germany and used in Austria for business. It was held that lease charges are not liable to Vat in Austria.