Applicability of reverse charge mechanism
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 September 2014
If a Company hires a motor Vehicle for carrying goods from one place to another, is reverse charge mechanism applicable?
06 September 2014
No. Reverse Charge not applicable since it is not for carrying passengers.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
07 September 2014
Thanks Sir for your above reply.
I have one more Query that in the above case,is service tax applicable on service provider?
Secondly if the tender documents say that above vehicle will be used for carrying employees and material both(though it is a transport vehicle)and work order does not say anything about carrying employees and practically employees are also carried in the transport vehicle(though illegal). is reverse charge still not applicable?
I have one more Query that in the above case,is service tax applicable on service provider?
Secondly if the tender documents say that above vehicle will be used for carrying employees and material both(though it is a transport vehicle)and work order does not say anything about carrying employees and practically employees are also carried in the transport vehicle(though illegal). is reverse charge still not applicable?
07 September 2014
In the given situation Reverse Charge will be applicable. If you hire a Motor car designed to carry passengers then Reverse charge will be applicable whether you carry goods or anything else.
If you hire a motor car not designed to carry passenger (Like Truck) then reverse charge will be applicable " services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road.
For details check out below link--
https://www.simpletaxindia.net/2013/12/reverse-charge-mechanism-under-service.html
If you hire a motor car not designed to carry passenger (Like Truck) then reverse charge will be applicable " services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road.
For details check out below link--
https://www.simpletaxindia.net/2013/12/reverse-charge-mechanism-under-service.html
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