Vehicle hiring for passangers

This query is : Resolved

anil kumar (Querist)
Follow

03 October 2013 dear sir
we have hired vehicle for pickup & drop of company employees & cab owner is not registered with service tax department

please tell me how much service tax we have to deposited is 40% or full while we are not taking any credit for the same

& what are the accounting code to deposit the same

anil kumar

anil kumar (Querist)
Follow

03 October 2013 please reply sir

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

03 October 2013 You, being a company are liable to pay service tax on Reverse Charge Mechanism. It is immaterial, whether the vehicle owner is registered or not.

You need to pay tax tax on 40%. You have to pay 40% tax, irrespective of whether you take Cenvat Credit or not.

Accounting Code :

Rent a cab : 00440048
Edn. Cess : 00440298
SHEC : 00440426