Service tax

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Yogesh (Querist)
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22 June 2013 My Query is that Company hire a bus for one day for company exployee pic and drrop to one palce to another place. party raised Bill of Rs. 9000/- for the same. so I want to know
1. what is the company liabilities for creating liablities of Service tax ??
2. Can company avial service tax input that kind services.

CA Parul Saxena

CA Parul Saxena (Expert)
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22 June 2013 If the transporter has not charged service tax in the invoice so there is no question of payment of service tax by the company. Moreover Rental services do not come under Reverse charge mechanism so company is not liable to pay service tax if the same is not charged in the invoice.
If the party has charged service tax then company is supposed to pay service tax and yes input of the same can be claimed.

Ganeshbabu K

Ganeshbabu K (Expert)
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22 June 2013 1)Reverse charge will be applicable..
refer

Notification No.15/2012-Service Tax

2)Service Provider should be HUF, Individual, firm

3)Service receiver – Business entity registered as body corporate

4)Tax on 40% of value by service receiver.

5)If motor vehicle is taken on hire (operating lease) without driver, it is ‘transfer of right to goods’. Then it is deemed sale of goods and Vat will apply – not service tax.

6)you cannot take cenvat credit on this payment as it is not an input service(not related to business)

Thanks & regards
Ganesh babu k

Yogesh

Yogesh (Querist)
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22 June 2013 Tahnks Mr Ganesh

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