Can service tax applicable on hiring of motor vehicles

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 Dear Sir/Madam,

Good Afternoon..!

Can Anybody Explain About Service Tax Applicability on below two segments.

1. Is Service Tax will be applicable for Hiring of motor vehicles(Buses) for transporting Employees from office to their destinations.

2. What is the difference between 30/2012 ST and 26/2012 ST for GTA Services. Which one we(Service Receiver) have to follow.

Please provide clarification about the about said points with documentary stuff means any Notification Number or Court Judgement etc...

Please Help Me.

Thanks,
Yuva

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 March 2014 1. Yes service tax is applicable on hiring of motor vehicle designed to carry passengers.

Further reverse charge is applicable if the service is provided BY an individual, HUF or firm TO a company (N/N 30/2012)

2. N/N 26/2012 provides ABATEMENT from service tax. Abatement means that the specified percentage is EXEMPT from service tax.

N/N 30/2012 provides for REVERSE CHARGE. Under reverse charge the service RECIPIENT is liable for compliance with service tax provisions.

You have to follow BOTH the notifications.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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19 March 2014 yes agreed with above suggestions

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Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 Thanks for your valuable reply.

If Service was received from Individual and didn't charge any service tax on his invoice. Then under 30/2012.ST on 40% of Value we have to pay ST am i Right. if not please provide your views.

finally We have to Pay GTA on % service value am i right please suggets.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 March 2014 1. You have to pay service tax on 40% of the total invoice value.

The service tax will be calculated as under:

Amount*40%*12.36%

2. In respect of GTA, abatement of 75% is available.

SO you have to pay tax on 25% of the invoice amount.

The service tax will be calculated as under:

Amount*25%*12.36%

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2014 Thanks for your valuable help..

Thanks,

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 March 2014 You are welcome. You should use the thanks button to convey your thanks