Work contact

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Prakash kumar (Querist)
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03 May 2015 Dear sir , Renting of motor vehicle for( pick up &drop ) comes under work contract or not ? if there is any contract b/w provider and receiver shall we consider it as work contract and take abatement accordingly ?

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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03 May 2015 it is not a works contract

Prakash kumar

Prakash kumar (Querist)
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03 May 2015 if we have agreement even though we will not consider it as work contract sir , but party asking take abatement as 50% on value while actual abatement is 40%on value in this case what should i say to party they are not agree ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 May 2015 The abatement is 60% and service tax is payable on 40% value.
As per Sr. No. 9 of Notification No. 26/2012-ST dated 20-06-2012, abatement of 60% is available on Rent-A-Cab Service i.e. service of renting of any motor vehicle designed to carry passengers. It means service tax is payable on only 40% of the value of Rent-A-Cab service.

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