We are a partnership firm into Trade Business of Industrial Goods and have service tax registration and have been paying service tax for 'Fabrication & Erection' Job works we undertake.
We heard that effective 1-Jul-12, service tax has been made applicable on "Car Hire" also.
We occasionally hire cars for visit to clients... say once in two-weeks or so just for a day or two.
My Question is:
1. As a recipient are we entitled to pay service tax on this service received under reverse charge mechanism?
2. Is it applicable even if say for a Pvt. Ltd. Company who is NOT registered under Service Tax.. as it does not come in its perview.
CAclubindia
