Reverse charge on rent e cab service


This query is : Resolved 

05 March 2014 Dear Experts,

my company is a telecom company. we are hiring vehicles i.e motor cars for various purposes like drive test etc. (not for carry of passengers). and this activity constitute major part of our output services. another thing is that we are not hiring vehicles from same service provider. depending on the availability and location we are hiring from different parties.

Now my question is that "is it required to pay service tax on reverse charge mechanism'.

05 March 2014 1. Reverse charges is applicable if service is provided BY an individual, HUF or a firm.

2. Service covered is renting of MOTOR VEHICLE designed to CARRY passengers.

The actual use to which the vehicle is put to is NOT relevant.

3. The fact that service is availed from different service providers is also NOT relevant.

4. Service tax is to be paid on EACH and EVERY invoice.


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