HIRING OF VEHICLE...

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Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2009 SIR,
DOES HIRING OF VEHICLE FOR A YEAR ATTRACT SERVICE TAX.

Sunil

Sunil (Expert)
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25 November 2009 The service provider has to bill the service tax to the receiver. Normally vehicles are hired for a year with fixed km every month and also the timings. Normally the vehicle is plied on basis of 30 days say 8 am to 8pm and minimum 3000 km / month. On that basis a monthly payment is made. Service tax is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2009 In case the VEHICLE is hired by a Govt. department?

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Sunil

Sunil (Expert)
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26 November 2009 Government too has to pay service tax that you bill them. But if you have billed inclusive of service tax, you can deposit tax using MU function in your calculator for negative percentage. The result will be deemed to be your Taxable Service Value and you calculate tax on that.