SERVICE TAX DOUBT

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Sam Kuruvilla

C.A

22 Points Posted on 31 January 2008

Sir,

An owner of the car who has been providing Motor vehicle (Omni Van) to BSNL on agreement for hire basis for one year .The payment by BSNL has been given to him on kilometer basis.The question arises that is this service fall in the service tax net?. If it attracts service tax , on which activity it falls? If not, reasons for the same with any case laws applicable to the above service.

thanks

Sam

Replies (2)

parthasarathy

Practising C.A

170 Points Posted on 01 February 2008

Hi, If the leasing is on basis of kilometer rate and if the possession of the vehicle is with the owner. If he provides the vehicle when the bsnl requires it for a trip..............then it comes under "Rent a cab scheme operator's service" (kuldip Singh Gill 2005(186) ELT 381(T-D), 2006(3/5) STR 689(T-D)." But if he only rents out the vehicle completely for use by the Bsnl........no matter which manner the lease rentals are paid....it doesnot come under purview of service tax...as the owner only leases out the possession of vehicle....to be used by bsnl.

Guest

Posted on 27 February 2008

Dear sir, Kindly clarify whether improvements, widening & strengthening and BT re-carpeting works contract are come under the perview of service tax. Thanking You, satish