Rate of tax on car hire-abatement


Querist : Anonymous (Querist) 22 May 2012

A pvt limited company engaged in manpower supply. They also provide car hire to firms, compary or individual for local or out of state travelling.Can they take abatement 60% on car hire charges and charge service tax @40% on gross value.please guide about that.

Arun Gulati (Expert)
23 May 2012

under 'Renting of a cab' service tax is leviable on 40% value. read Notification No. 1/2006-ST, dated 31.3.2006.

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