Service tax payable on rent a cab

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 whether service tax on rent a cab is payable by service receiver or service provider if transporter is a pvt ltd company.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2012 If the service provider is a company, then service tax is payable by the service provider. Reverse charge is NOT applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Thank you very much sir. It means in case of individual and partnership firm service tax is payable by service receiver.

I want to know one more thing if we have received a invoice from transporter of Rs 10,000 (including transport service + Guide Servie + Othere Service). In this case we have to deduct service tax amount on Rs 10,000/- or only transport service ??
Please explain.

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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20 September 2012 Since, service provider is a company, you don't need to deduct the service tax amount from bill.
you have to pay whole amount including service tax to the transporter, he ll deposit the service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Sir i want to know what will be in case of individual and partnership firm.
if they invoice us a single bill (transport charge including of guide charges ) .
whether we have to deduct service tax on total bill amount or only transport charge or in this case transporter will deposit service tax and we will pay service tax amount to transporter ??
Please explain.

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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20 September 2012 Service tax will be paid by transporter only.
You just need to check that whether as per agreement with transporter, you have to pay service tax extra or transporter has raised bill in composite manner.

In case ST has to be paid extra:
Trasport may issue as supplimentary invoice for ST and you ll reimbure the same.

In case of Inclusive billing: You just pay the bill amount Rs.10000/- and ST compliance ll be ensured by transporter.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Sir i think you are saying in case of of transporter is a company.

But from July 2012, Service tax on rent a cab is payable by service receiver in case of individual or partnership firm as per notification no 30/2012-Service Tax..

Please advice ..

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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20 September 2012 Rent a Cab Scheme Service: In respect of services provided or agreed to be provided by way of renting or hiring of any motor vehicle designed to carry passenger on abated value

Service Provider is an individual / huf/Proprietary or Partnership Firm/ aop

Serv ice Receiver is a Company (say)

Service receiver has to pay 100%

in respect of services provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passesnger ON NON ABATED VALUE

Service Provider is an individual / huf/Proprietary or Partnership Firm/ aop

Serv ice Receiver is a Company (say)

60% Service Provider and 40% Service Receiver

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2012 Thanks mam.

one more thing i want to know that if service provider (an individual / huf / proprietary or partnership firm) raise bill to company of Rs 1,000 (including of transport + guide service) . in this case service receiver will pay service tax on 1,000/- or only transport service?

CA Parmeshwar Rathi

CA Parmeshwar Rathi (Expert)
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28 January 2013 in case separate amount shown, ST would be payable only on cab service. if there is composite bill, you have to pay st on full value.

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2013 If we are a tour operator. and we had charge 3.09% service tax from guest and same deposited .. But against this service we have book a tour package from our agent including transport + hotel accommodation .
I want to know as service receiver have to pay ST 4.95% on transport service . But we have received combined bill of amt Rs 50,000/-. So we have to pay service tax or not ???

If we have to pay service tax in combined bill then in this case we have already paid service tax 3.09% on tour package which we have already charge from our guest. and second time we are paying service tax 4.95% ?
Please advise .