Service tax by employer

A Company provides transport facility to its employees between residence and work place at a concessional rate through buses owned by the company. Gross value recovered from employees in this regard during the year is Rs. 50 lacs. Whether a company has to pay service tax on this as a rent a cab operator service?
Replies (4)
Dear Ankit As per mega exemption 25/2012-ST dated 20-06-2012 a contract catriage for transportation of passengers excluding tourism, conducted tour, charter or hire are exempt from service tax. Contract carriers means a motor vehicle which carriers passengers for hire or reward. It includes maxicabs and motor cars not charging separate fare from passengers.

Hi Ankit

 

Transporation service by employer to employee is a service as defined in service tax law. Further concessional rate recovered from the employees are the consideration for the service hence will liable for service tax. 

Further, this service is not covered by negetive list or megha exemption list hence it will be liable for service tax.

 

Regards

Dharmesh

Hi Ankit

 

Transporation service by employer to employee is a service as defined in service tax law. Further concessional rate recovered from the employees are the consideration for the service hence will liable for service tax. 

Further, this service is not covered by negetive list or megha exemption list hence it will be liable for service tax.

 

Regards

Dharmesh

Dear Jay Kumar Ratan,

How this service can be treated as Contract Carriage? Is there any decided case law on this? I believe it's controversial. 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
Featured 06 August 2026
Junior Accounting Associate

Prish Consultancy LLP

New Delhi

B.Com

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 25 August 2026
CA Article's

Saini Pati Shah & Co LLP

Mumbai

CA Inter

View Details
Company
12 August 2026
Deputy Manager - Finance

RoamPrime Technologies Private Limited

Bengaluru

CA

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details