Reverse service tax on rent a cab

This query is : Resolved

Sonia Aghi (Querist)
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21 February 2014 Dear Sir/Ma'am,
My Query is on reverse service tax applicability on reimbursement of rent a cab by employer to employee

Bill is in the name of Employee only.
Exp in co's book is treated as conveyance allowance in salary of that employee.

Pl quote any Provision or Rule.

Thanks.

Ganeshbabu K

Ganeshbabu K (Expert)
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23 February 2014 Though company is reimbursing the Bill, the service receiver is the employee, if the Bill of the service provider is in name of employee

[In fact, the motor vehicle operator is not likely to know that the service receiver is company and will have to charge service tax in normal course, if he is otherwise liable].

In such cases, the company will not be liable under reverse charge.

However, if the bill is in name of the company, reverse charge will apply, if the service provider is individual, HUF etc.
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Sonia Aghi

Sonia Aghi (Querist)
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28 February 2014 Dear Sir,
Thanks I also have the same opinion but after i haven't get any law wording.

So,Pl let me know the provision or something that is written in law.

Ganeshbabu K

Ganeshbabu K (Expert)
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28 February 2014 What provision i can suggest you for this
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it is general basic rules where in case of reimbursement generally service receiver is individual only ,..
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no provision can suggest for this than i explained above and i guess it is convincing

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