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Service tax on vehicles owned by school

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Querist : Anonymous

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Querist : Anonymous (Querist)
31 May 2013 whether Service tax is applicable in case of vechicle owned by school?

14 June 2013 You not mentioned service here..

if you mean that service tax applicability in case of vehicle taken as rent..

No service tax not applicable if your school is not a body corporate.

Applicability for rent a cab service :-

1)Service Provider should be HUF, Individual, firm

2)Service receiver – Business entity registered as body corporate

3)Tax on 40%, if Cenvat credit is not availed by the service provider – No Cenvat credit in most of the cases – hence cost to company.

4)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.

Thanks & regards
Ganeshbabu k


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