Santosh T (CMA) (40 Points)
19 June 2013Hi,
Our company is hiring vehicles (Cars) on a contract base and paying bills monthly as per agreed terms and condition. Party is charging Service Tax. But as per negetive list of service tax, Metered Cabs, Radio Cabs, Taxis are emempted from payment of servie tax. So please clarify me whether my party is charging service tax on hiring of vechicles is correct or not?
CA. Kuldeep Singhi
(Entrepreneur)
(424 Points)
Replied 20 June 2013
Bro the negative listed services of metered cab, radio taxis & auto rickshaws are for Transportation of passengers e.g. for personal purpose but in this case since the employees of company are taking service on behalf of company so the concept of reverse charge will be applicable.
So your party is correct.
Santosh T
(CMA)
(40 Points)
Replied 20 June 2013
Thank you Kuldeep for your suggestion. Further may I request you to please advice us the position after 01-07-2012 in view of Negetive List of Service Tax released by authorities on the said subject.
CA. Kuldeep Singhi
(Entrepreneur)
(424 Points)
Replied 20 June 2013
Vikas
(CA)
(1135 Points)
Replied 21 June 2013
the term in NL used is "metered"; hence., if it is not metered instead hired, then the same shall be taxable.
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