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Service tax to be paid on Vehicle hiring

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(Querist)
01 April 2009 Dear Sir,

We are Hiring vehicle for our company , (1) should we pay service tax on vehicle hiring ,
(2) if yes , what should be the rate of Service tax
(3) What is the rule of abatement
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Dayal

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Dayal (Expert)
01 April 2009 The service tax rate is 10.3 post abatement of 60% from the taxable amount.

Say Rs. 100 has been charged, less Rs. 60 as abatement, service tax on Rs. 40 @ 10.3%

Not No 1/2006
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Abhishek Ved

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Abhishek Ved (Querist)
02 April 2009 thanks
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