Service tax

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prince (Querist)
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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?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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28 November 2014 Cab services are exempt from payment of taxes under section 66D of finance Act 1994

Rupesh Jain

Rupesh Jain (Expert)
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29 November 2014 cab service is exempt form the service tax act.

prince

prince (Querist)
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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?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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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%

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