Service tax
This query is : Resolved
28 November 2014
Dear Expert
My company has hired a cab on rent. Service provider i.e. cab owner has raised an invoice without charging the service tax however, service tax is being deducted by the company on the gross amount of invoice raised by cab owner. further, Company deposits service tax to the department. My question is the above whole procedure is valid? whether Service tax should have not been charged by the Cab ownver and also deposited by him?
My company has hired a cab on rent. Service provider i.e. cab owner has raised an invoice without charging the service tax however, service tax is being deducted by the company on the gross amount of invoice raised by cab owner. further, Company deposits service tax to the department. My question is the above whole procedure is valid? whether Service tax should have not been charged by the Cab ownver and also deposited by him?
CA Kumar Mukesh
(Expert)
28 November 2014
Cab services are exempt from payment of taxes under section 66D of finance Act 1994
Rupesh Jain
(Expert)
29 November 2014
cab service is exempt form the service tax act.
02 December 2014
Sir
Thanks for Reply!!!
here service receiver is Company and Company heired cab for its Employees on monthly basis. however is it exempt under Service Tax? what is concept of 40% service tax on gross value in case of cab services?
Thanks for Reply!!!
here service receiver is Company and Company heired cab for its Employees on monthly basis. however is it exempt under Service Tax? what is concept of 40% service tax on gross value in case of cab services?
CA Kumar Mukesh
(Expert)
02 December 2014
Prince It is not a Cab services.
It will covered under the definition of services provided or agreed to be by way of renting of a motor vehicle designed to carry passengers . and as per Notification no 30/2012 dated 20th June, 2012 Tax liability are as under
On abated value i.e. 60%
Service Receiver: 100%
Service Receiver: 0
On Non abate value
Service Receiver: 40%
Service Receiver: 60%
It will covered under the definition of services provided or agreed to be by way of renting of a motor vehicle designed to carry passengers . and as per Notification no 30/2012 dated 20th June, 2012 Tax liability are as under
On abated value i.e. 60%
Service Receiver: 100%
Service Receiver: 0
On Non abate value
Service Receiver: 40%
Service Receiver: 60%
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