Dear Members,
Please suggest me on the following?
A company is paying rent of a car leased from an individual (Without transfer of ownership). In this case reverse charge is applicable and company have to pay service tax. Please let me know that in Which service this will be included. As i asked fro service tax department, they said that it will be cover under supply of tangible goods. is it right or not?
Thanks and Regards
Sanjay Verma
| Originally posted by : CA.SANJAY VERMA | ||
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Dear Members, Please suggest me on the following? A company is paying rent of a car leased from an individual (Without transfer of ownership). In this case reverse charge is applicable and company have to pay service tax. Please let me know that in Which service this will be included. As i asked fro service tax department, they said that it will be cover under supply of tangible goods. is it right or not? Thanks and Regards Sanjay Verma |
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No its not correct. In the given case, reverse charge will be applicable and tax will payable under head 'Rent-a-Cab Service'. Also refer Notification No. 30/2012 for more details.
CAclubindia
