Service tax reverse charge for bus contractor service

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arun laxman gaikwad (Querist)
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22 April 2014 Dear Sir

We are paying monthly amount to a Bus contractor towards charges for carrying our staff from nearby railway station to office and back. Bus contractor raising bills to us without charging any service tax on it.

Whether this transaction is applicable under RCM (reverse charge mechanism)? If yes whether bus contractor should charge 60% of service tax on the bill? and we have to pay 40% portion to govt.?
or
Whether 100% of service tax should paid by us as service receiver (non-abated value)?
or
Whether this transaction comes under rent-a-cab service ?

Pls clear the above.

Thanks and regards
Arun

KUMAR trp707@gmail.com

KUMAR trp707@gmail.com (Expert)
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22 April 2014 ANY MOTOR VEHICLE CONSTRUCTED OR ADAPTED TO CARRY MORE THAN 12 PASSENGER EXCLUDING THE DRIVER FOR HIRE OR REWARDS

CAN AVAIL ABATEMENT NOTIFICATION 026/2012-ST ON 40% S TAX.
SECTION 65(20)(1)CAB MEANS A MOTOR CAB (2) A MAXI CAB

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