Renting or hire of motor vehicle designed to carry passenger
This query is : Resolved
27 April 2013
The service "Renting or hire of Motor vehicle designed to carry passengers" is covered under the reverse charge mechanism.
But this service is not covered specifically u/s 65(105) of Finance Act, 1994 i.e the 119 accounting codes.
Please refer to the list here.
(https://www.servicetax.gov.in/circular/st-circular12/st-circ-165-2012-annx.pdf)
Should the last service i.e "other services not covered by 119 above" used to pay the tax for this service?
Please confirm or let me know the accounting code for assigned to this service.
Thanks.
But this service is not covered specifically u/s 65(105) of Finance Act, 1994 i.e the 119 accounting codes.
Please refer to the list here.
(https://www.servicetax.gov.in/circular/st-circular12/st-circ-165-2012-annx.pdf)
Should the last service i.e "other services not covered by 119 above" used to pay the tax for this service?
Please confirm or let me know the accounting code for assigned to this service.
Thanks.
27 April 2013
It will be under Rent-a-cab scheme operator services with codes 00440048 00440049 00441307 00440050.
27 April 2013
But cab operator service is different from carrying of passengers service on an agreement right?
beacuse of this, we have been paying it under other than negative list
beacuse of this, we have been paying it under other than negative list
21 July 2025
Key points:
Service Description:
Renting or hiring of motor vehicles designed to carry passengers (like taxis, cabs, buses).
Reverse Charge Mechanism (RCM):
Under service tax law (Finance Act 1994), this service was covered under RCM, meaning the recipient of the service (usually a business) pays the service tax instead of the supplier.
Accounting Codes Issue:
Section 65(105) of the Finance Act 1994 provides definitions for various services.
However, your point is that this specific service is not explicitly listed in the 119 accounting codes issued for service tax.
Circular Reference:
The circular you referred to (Circular 165/2012) provides detailed accounting codes for services.
Since "Renting or hire of motor vehicle designed to carry passengers" is not explicitly listed, the confusion arises about which accounting code to use.
Resolution:
The service can be classified under "Rent-a-Cab Scheme Operator Services" with codes such as:
__________
However, note:
Rent-a-Cab service operators provide a different service (taxi service with driver).
Renting/hiring vehicles without driver (like self-drive rental) is treated separately.
For renting or hiring motor vehicles without driver (designed to carry passengers), when under RCM, the tax should be paid under the code "other services not covered by 119 above" if no specific code exists.
What you should do:
If no exact accounting code exists for your service, you can classify the service under "Other Services" category for payment under reverse charge.
Keep proper documentation explaining the nature of service.
Service Description:
Renting or hiring of motor vehicles designed to carry passengers (like taxis, cabs, buses).
Reverse Charge Mechanism (RCM):
Under service tax law (Finance Act 1994), this service was covered under RCM, meaning the recipient of the service (usually a business) pays the service tax instead of the supplier.
Accounting Codes Issue:
Section 65(105) of the Finance Act 1994 provides definitions for various services.
However, your point is that this specific service is not explicitly listed in the 119 accounting codes issued for service tax.
Circular Reference:
The circular you referred to (Circular 165/2012) provides detailed accounting codes for services.
Since "Renting or hire of motor vehicle designed to carry passengers" is not explicitly listed, the confusion arises about which accounting code to use.
Resolution:
The service can be classified under "Rent-a-Cab Scheme Operator Services" with codes such as:
__________
However, note:
Rent-a-Cab service operators provide a different service (taxi service with driver).
Renting/hiring vehicles without driver (like self-drive rental) is treated separately.
For renting or hiring motor vehicles without driver (designed to carry passengers), when under RCM, the tax should be paid under the code "other services not covered by 119 above" if no specific code exists.
What you should do:
If no exact accounting code exists for your service, you can classify the service under "Other Services" category for payment under reverse charge.
Keep proper documentation explaining the nature of service.
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