Service tax payable on rent-a-cab service

Paresh (Final C.A. Student) (92 Points)

05 September 2013  

Dear all,


My query is with reference to Notification No. 30/2012-Service Tax.

In the said notification Point No.7(b) states that    ''in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business '', the service receipient being a company registered under Companies Act,1956 needs to pay service tax under reverse charge mechanism.


Now my query is - If we hire a car to travel from our office to Airport, do we need to pay service tax on such transactions under reverse charge mechanism?