Who is liable to pay

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 An assesee is a travels service provider on a proprietory basis, he provides services during the financial year 2011 -2012 to corporates as well as non corporate clients

So who is liable to pay service tax in both cases.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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13 June 2013 assessee is liable to pay and not the company, because company is liable only in case of renting of motor vehicle.
as you asking for travel service assesee is liable.
if possible do mention the nature or contract then it could be better clarified.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2013 thanks Vikas for responding

The assesee is providing services similar like Meru cabs is providing.

CA Vikas Acharya

CA Vikas Acharya (Expert)
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14 June 2013 if the same is for travel as contract carriage, company is not liable.
if the vehicle is given on rent to the co.
say given on hire for some period like month or week and co. using the vehicle either with own driver or driver by the cab service provider only than reverse charge appklicable.

otherwise if normaly using the service for consideration in payment for every single transaction then thats not on rent and no reverse charge.

Note. Generally carrying passenger by road is not taxable therefore taxi cabs etc exempt from service tax.
only carrying passenger for tour or charter or on hire by a contract carriage is taxable

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