Service tax on bus hire charges
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 May 2013
We are pvt ltd co.. We have taken bus on hire from an agency for daily sending of employees from office to our plant and vice-versa. The agency is giving bill stating that service reciever is resposible for paying service tax under notification 30/2012 dt. 20.06.2012. Please tell me whether hiring bus for only employees will also come under that notification and are we responsible for ST.As that notification is for transport of goods and not for employees.
04 May 2013
You may fall under rent a cab services.
ntf 30/2012 ST
in respect of services provided or agreed
to be provided by way of renting of a motor
vehicle designed to carry passengers on abated value to any person who is not
engaged in the similar line of business
ntf 30/2012 ST
in respect of services provided or agreed
to be provided by way of renting of a motor
vehicle designed to carry passengers on abated value to any person who is not
engaged in the similar line of business
CA Suresh Jain
(Expert)
22 September 2013
As per section 66D (o) service of transportation of passengers, with or without accompanied belongings, by a stage carriage is not a service at all.
The term "Stage Carriage" is not defined under service tax Law.
As per section (29) of THE MOTOR VEHICLES ACT, 1939 " stage carriage" means a motor vehicle carrying or adapted to carry more than six persons excluding the driver which carries passengers for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey.
In the case mentioned by you the service is not provided to individual employee against payment by each of them and therefore the service is liable to service tax. If service provider is either of an individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons and you are a body corporate then the RCM under notification 30/2012 is applicable, according to which you shall be liable to pay service tax @ 40% of 12.36% on the value of service received by you.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
The term "Stage Carriage" is not defined under service tax Law.
As per section (29) of THE MOTOR VEHICLES ACT, 1939 " stage carriage" means a motor vehicle carrying or adapted to carry more than six persons excluding the driver which carries passengers for hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages of the journey.
In the case mentioned by you the service is not provided to individual employee against payment by each of them and therefore the service is liable to service tax. If service provider is either of an individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons and you are a body corporate then the RCM under notification 30/2012 is applicable, according to which you shall be liable to pay service tax @ 40% of 12.36% on the value of service received by you.
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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