Service tax? in which services??

Dear Members,

Please clarify me that one of my client is going to provide vehicles on hire to other company. These vehicle are provided with drivers and petrol expenses. The hire charges are fixed on monthly basis. Whether this service is covered under Rent a cab service or under Supply of Tangible goods for use Services. Company's main business is of trading goods. Please reply soon. Its urgent!!


Thanks in advance

Sanjay Verma

Replies (3)

Dear Sanjay,

I am of the opinion that this is Rent - a - cab service. When a more specific head is given for any service then why should we go for a general head. Moreover 60% abatement is also available on Rent - a - cab service, which is not available otherwise.

you can wait for other members to give their opinion.

Is it wrong if we paid service tax under supply of tangible goods for use services.??

Actually this client is taken the registration under this service. Can we ractify it with service tax deppt?

No not exactly, I suppose that the service tax collected, even though under mistake of classification of service, has been deposited with the department. It's an offence if assessee charges a higher tax and does not deposit it with the department. Upto now whatever has been collected as service tax should go to government account.

In respect of modification in the ST - 2, I would say that it's an easy process. The assessee would be having his login at www.aceg.gov.in. ST-2 can easily be modified online and submitted online. You will receive the modified ST-2 after the cancellation of the previous ST-2 within a short period of time.

You may be aware of the procedure but for reference only follow the procedure:

www.aces.gov.in > Service Tax > Login > REG > Amend Registration > Select ST - 2 to be amended > make necessary details and after confirming the same submit the same.

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