Query regarding hiring of services under prcm

Dear experts,

A corporation has hired bus services & cars for three purposes:

1. to carry employees from the residential colony  to work place and vice-versa

2. to carry employees children  from residential colony to school and vice-versa

3. to carry employees from colony to railway station and vice-versa

Under above stated circumstances what will be service tax payable by the corporation in each case  if

A) SP is an individual registered under ST

B) SP is an indiviual and not registered under ST

What is the liability of SR ? SR is liable to pay ST at what rate and on what amount with regard to notification no.30/2012 dated 20/6/2012 ?

Replies (2)

In all the three cases, the liability of SR shall be 40% of 12.36%.

I agree with sumit.  Even if SP is not registered with service tax department, still liability is restricted to 40% of 12.36%.

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