16 April 2013
We are Manufacturing Company, we are covered under Reverse Charge Mechanism,we would like to have opinion for following Query...
If our marketing Team is going outside for Marketing Purpose & hires Taxis for Traveling than whether Company is liable to Pay Service Tax on Invoice Amount issued by Car Operator in following cases:-
1)If Invoice is issued in the name of Company? 2) if Invoice is issued in the name of Employee & subsequent reimbursement is made to him/her?
Request you to guide with detailed provision of Act....
16 April 2013
no. travelling in taxis are exempt form service tax. tax and reverse charge comes on renting a cab service and not for travelling in radio taxis, buses, autos, metered cabs. as the same falls under negative list.