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Service tax on hiring of cargo van.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2012 I am having a proprietorship firm in which i have 5 cargo van which runs in courier delivering company under an agreement.

I am curious to know that can i charge Service Tax over Bill Amount?

Actually i was charging Service Tax over Bill Amount but few days ago I was told that there is a new rule effected from 01.07.2012 under which no proprietorship firm can charge Service Tax over Bill Amount unless firm is Private Limited.

Is that right?? If yes then please guide me and also send me a link where i can go through the new amendment of Service Tax.

Thanking u in advance..

CA Suresh Jain

CA Suresh Jain (Expert)
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07 September 2012 This is not correct. You are not providing any service related to renting of a motor vehicle designed to carry passenger and therefore, RCM is not available.

You have to charge and pay the service tax @12.36%

For further clarification please mail the query at sureshjain.nj@gmail.com and pay if you please Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.

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