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Car hiring service

This query is : Resolved 

24 December 2013 detailed description on car hiring services

24 December 2013 Reverse charge in renting or hire of Motor vehicle designed to carry passengers

1)Reverse charge when renting to a person who is not in similar line of business.

2)Service Provider should be HUF, Individual, firm

3)Service receiver – Business entity registered as body corporate

4)Tax on 40%, if Cenvat credit is not availed by the service provider – No Cenvat credit in most of the cases – hence cost to company.


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