banner_ad

Letting out of motor vehicles on hire

Service Tax (Legacy) 823 views 1 replies

Dear Members,

 

As per the new regime of service tax, in case of letting out of motor vehicles on hire by an individual or a firm to a company, reverse charge mechanism would be applicable.

 

In this regard, if an employee of a company hires a cab, and later on seeks the reimbursement from the company, is the company liable to pay tax under reverse charge mechanism, or this transaction would be treated as a separate transaction between employee and employer and thereby not subject to service tax?

 

Two scenarios may be possible:

  1. Bill obtained by the employee in his own name
  2. Bill obtained in the name of the company

 

I'm more concerned about the second scenario. Pls share your views in this regard. Hope you got my question.

Replies (1)
Yes you are correct, if the invoices are raised in the name of the Company, the revised guidelines are to be followed, but if the invoice is in the name of the employee, the service provider has to bill for ST in the invoice only, wherein the company will not be able to take any CENVAT Credit and it will be the cost for Company.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details