Car hiring service

This query is : Resolved

Report Abuse Follow Query Ask a Query

Pallavi

Pallavi (Querist)
Follow

24 December 2013 detailed description on car hiring services

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

24 December 2013 Reverse charge in renting or hire of Motor vehicle designed to carry passengers

1)Reverse charge when renting to a person who is not in similar line of business.

2)Service Provider should be HUF, Individual, firm

3)Service receiver – Business entity registered as body corporate

4)Tax on 40%, if Cenvat credit is not availed by the service provider – No Cenvat credit in most of the cases – hence cost to company.