banner_ad

Service tax reversal for car hire

Service Tax (Legacy) 374 views 3 replies

Car hired to carry cash from one branch to another branch by bank due to demonistation.Is service tax reversal payable by bank? Please clarify.

Replies (3)

Yes, Servise tax under RCM is applicable.

Dear Mr. Murugan,

Sec 68(2) of Fin Act' 94 read with Notifcation 30/2012-ST provides for reverse charge mechanism where in S.No 7 of the said notification requires service receiver to pay service tax in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business.

in the instant case, since banks who are not in the similar line of business, the cars designed to carry passengers are if hired by them, then service tax shall be paid on 40%/50% of the value depending on abatement/without abatement.   

Yes reverse charge is applicable


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details