QUESTION

What value would we declare on E way bill / challan while sending machine on rent. Would it be WDV of machine in books of lessor. Keep in mind that here taxable value would only be the rent (much less than the machine value).

ANSWER

Facts of the case: While supplying machine on rent, what value shall be declared on E Way bill and challan while transporting.

Interpretation: In your case machine is transported for reason other than supply i.e. for rental service.
Thus Delivery challan/ E Way bill is generated for mere transportation of machine, therefore value supposed to be declared on Delivery challan/E Way bill should be value of machinery and not the taxable value of rental service.

Conclusion: Accordingly the value of machine should be declared on Delivery challan and E Way bill.