Service tax on car lease

The persons who are receiving such service has to pay service tax, irrespective of amount. So they have to get them registered.

The payment should be 60% incase of abatement or 100% in case of normal provision. Under abatement you cannot claim credit of input services.

Out of the total payment, the service receipient has to collect and pay

1. Total amount of abated value in case of abatement i.e. 60% or 
2. 40% of service tax in case of non abatement.

The company has to pay 

1. Nil - In case of abatement and 
2. 60% - In case of non-abatement. But incase of non-abatement, you can avail input credit while paying the same.

The service recipient is paying the tax on behalf of you. It is the service recipient who can claim input credit and not the company on the ST paid by the company.

Mr. Meyappan, 

The option is you can show that as perquisite provided to employee. The benefit is

1. The service recepients need not register.
2. You need not pay service tax 
3. The final tax liability will be on employee which if he planned well can be minimised to 10%

Thanks Sai tharun boppana :)

so as you say i can mention it as perquisite provided to employee and i (company) need nots to be any tax and they(employee) need nots require to register also, but you mentioned

"final tax liability will be on employee which if he planned well can be minimised to 10%"!!! i'm not clear on these can you just brief on that.

Mr. Meyappan,

It depends upon individual to individual. If the taxable donot exceed 5 lakh. Then the tax on such perquisite will also be 10%. That is what I mean.

Thanks Sai tharun boppana :)

so you mean to say only individual IT will cover for this topic and not any service tax will be applicable on this context if it is for company or individual;

I have one basic doubt Mr. Meyappan. What business is your company in???

Its basically a shipping logistics company. does nature of business has any role to play in service tax on employees??!!