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Gst on hiring of vehicle

3746 views 3 replies

CA Ankit Agarwal

CA CS

703 Points Joined February 2012

A company is hiring a bus for for their employees for 3 years.

Hiring charge- 1200 per day. For 3 year= Rs. 13,14,000

Diesel charge for 3 year = Rs. 15,00,000.

What will be the GST impact on above transaction.

Note- Contract is to be awarded to the provider of vehicle .

Replies (3)

sanjith kotni

Articled assistant

663 Points Joined November 2015

Gst should be charged on reverse charge basis only on the hire charges of 1200 per day since the hire charges are borne by you no need of paying gst on the same under reverse charge

sanjith kotni

Articled assistant

663 Points Joined November 2015

See the rate under Gst as earlier abatement is there now the effect of same is given in the rate of gst itself around 5 % I think since earlier service tax was there on 40% of the bill