Renting of a car

Save Share

This query is : Resolved

karthik P (Querist)

21 April 2010 i have an annual professional services income of more than Rs. 10 lakhs. Recently i started renting a car of mine to a corporate company. now i need to take registration under which service? is it
1. Rent a cab services
2. Tour operator services
3. Travel agents services
4. Business auxilary service
5. any other

please clarify me so that i will register under that service.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

21 April 2010 Renting of Car is separate service defined under Service tax. so Renting cab covered under the same service only

karthik P

karthik P (Querist)

28 April 2010 i couldn't get. is Renting a car covered under Renting a Cab service? Renting of a Car is not a separate service under service tax. please clarify

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 April 2010 Section 65(105)(o) of Finance Act defines rent a cab service as any service provided or to be provided to any person, by a Rent-a-cab scheme operator in relation to the renting of a cab is taxable service.
As per section 65(20) Cab means (definition provided under the act is an exhaustive in nature)
(i) a motorcab, or(vehicle carrying not more than 6 passengers)
(ii) a maxicab, or (vehicle carrying not more than 12 passengers)
(iii) Any motor vehicle constructed or adapted to carry more than twelve passengers, excluding the driver, for hire or reward (which includes minibus, minivan and also bus).
Provided that the maxicab referred to in sub-clause (ii) or motor vehicle referred to in sub-clause (iii) which is rented for use by any Educational body imparting skill or knowledge or any lesson on any subject or field other than a commercial coaching centre, shall not be included within the meaning of the cab (i.e. profit oriented educational institutions were not exempted and subjected to Service Tax).

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now