Rent a cab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2015 Hello sir,

A proprietorship firm is providing a renting of vehicle service to Govt. undertaking, and covered under Rent a Cab service under service tax, and paying service tax under RCM,

Now, the firm has take the Vehicle on rent form individual capacity drivers with vehicle and paying to the driver after deducting TDS @ 1 %,

My question is
1. Weather the service tax is also applicable on drivers?
2. If yes then the cenvet is allowed to the firm or not?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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20 June 2015 If the drivers are providing service for amount more than Rs.10 Lacs in a year then the same would be applicable

it is to be noted that the vehicle taken on rent service would get covered under supply of tangible goods service

CENVAT is allowed to the firm