Confusion in charging service tax

This query is : Resolved

Kaushik (Querist)
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07 July 2014 I give buses and cars on hire and charge service tax @4.94%. One car owner who is also in same line told me I shud not charge S.T. to anyone if I m charging @4.94% Also pls tell me if one vehicle owner shud charge S.T. to another owner if other one has taken car on hire from first one and given to client on rent

CMA Nishad Patkar

CMA Nishad Patkar (Expert)
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08 July 2014 One need not to charge service Tax in his invoice when service tax is charged at abated Rate only if

Service Provider is located in Taxable Territory and must fall under one of the following category

1. Individual
2. HUF
3. Partnership Firm
4. AOP

and service recipient is Business Entity registered as Body Corporate

If services provided to other than body corporate then you can charge @ 4.94% on your invoice.