Service tax implication on commercial vehicle

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 Co. entered in contract with a individual for providing commercial vehicles (including Driver and fuel) for carrying goods for which contractor charged the rate per trip. E.g. contract for 50 trips in a month is 100000/-.

I want to know the service tax implication on such transaction on service provider as well as service receiver

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 January 2015 Service provider need not pay any service tax but service receiver has to pay 12.36% on rent excluding fuel and driver payment.

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 THANKS FOR YOUR REPLY.
SIR, CAN YOU CONFIRM THE SECTION OR RULE OR NOTIFICATION IN WHICH IT IS COVERED UNDER REVERSE CHARGE AND METHOD OF CALCULATION OF VALUE.