Car lease rental

This query is : Resolved

Rahul Sharma (Querist)
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12 January 2015 Dear Sir/Mam

Would you kindly requested to advice whether Car Lease Rental will cover under the ambit of Service Tax.

For Example : An employee of the ABC Ltd, renting its car to an company, will it cover under the service Tax and if he is renting a car to the partnership firm then what will the position. please provide the case law, if possible.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 January 2015 If renting a car to company 100% service tax will be paid by company(if abatement is applicable). In case of renting to firm no RCM is applicable.

Please see the link.

http://taxguru.in/service-tax/reverse-charge-mechanism-abatement-rate-chart-service-tax.html

Rahul Sharma

Rahul Sharma (Querist)
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12 January 2015 Thanks Raman Ji,

Can we take the cenvat benefit under Excise, please advice.

Regards
Rahul

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 January 2015 Yes you can take it........