27 June 2015
Sir, i have just gone through the article on impact of Service tax on OlA and UBER cabs.. in Tax guru.in
1) if Aggregator is acting as a Rent a cab service provider for 1000/- in which his commission is 100.. he has to pay service tax on his 100 and also on 900 rs of cab owner due to reverse charge mechanism.
2) If aggregator is acting as agent for procuring business for cab driver : charge by driver is 1000 rs out of which commision of aggregator is 100/- . here also the aggregator has to pay service tax on his 100 and also on 900 of cab owner..
What i understood is above .. is that right?? its confusing me...