Rate of tax on car hire-abatement
This query is : Resolved
Querist : Anonymous
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.
20 July 2025
Yes, the private limited company can avail 60% abatement on car hire charges and charge service tax on 40%, provided it does not claim any CENVAT credit on inputs or services used in providing car hire.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- GST on Renting godown to KFCSC for Storage of Raagi
- Capitalgain tax purposes for valuation report compulsory
- TAX AUDIT ON PROFESSIONAL INCOME
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- Oct 2025 Invoices
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- TDS on Fixed Assets purchased
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- Under marginal scheme
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
