One of my client has started a website from where taxi bookings in various cities in india can be done online. They have tie-ups with the local vendors of each cities. Whenever someone books a cab through his website, he gets the car no. & driver's contact no. and the company's bill is provided to the service receipient. Unlike the services provided by redbus.in, here the receipient does not come to know about from whom the car is being hired & provided to him. For them my client is the service provider.
My question is whether my client can claim abatement provided to taxi hiring agencies or will he be categorised under Internet based services & no abatement will be available to him.
My contention is that since the receipient does not come to know as to whose car is being provided i.e since for them he is the service providers, it is my clients headache to provide him the desired car model on his journey date, the benefit of abatement should be provided. It is not just internet services provided. Cars can also be booked through phone. Internet is just another medium through which bookings can be done.
Kindly help me as to how will this service be categorised & what rate of service tax should be charged by my client to his service receipients
CAclubindia
