Service tax on mahindra balero

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Bhavin Pandya (Querist)
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18 August 2011 Dear Sir,

My client having contracts with Mahanagar Gas and he has provided Mahindra Balero on contract basis with specified p.km fixed rate s as emergency VAN.

I wanted to know this will cover in which category? and it is any Abatement?

Kindly advice how to charge ST.

Thanks and Regards
Bhavin

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 August 2011 It will cover under Rent a cab scheme operator
As per Section 65(105)(o), any service provided or to be provided to any person by a rent-A-Cab scheme operator in relation to the renting of a cab .If the cab owner gives the cab on rent to the service recipient then he is liable to service tax.

Definition of cab

Cab is defined under Section 65(20) which means:

A] A motor Cab: Motor vehicles constructed or adapted to carry not more than six passengers excluding the driver.

B] A Maxi Cab: Motor vehicles constructed or adapted to carry more than six but less than twelve passengers excluding the driver.

C] Any Motor vehicle constructed or adapted to carry more than twelve passengers excluding the driver.

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Bhavin Pandya

Bhavin Pandya (Querist)
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18 August 2011 Thank you sir for your reply.

in this case van given on hire on fixed rate so this is still applicable ?

Secondly any abatement available?

Regards
Bhavin

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 August 2011 yes. category C specified as C] Any Motor vehicle constructed or adapted to carry more than twelve passengers excluding the driver.

No abatement scheme for this service

Bhavin Pandya

Bhavin Pandya (Querist)
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18 August 2011 Thank a lot Sir :)

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