28 April 2013
Our company providing Rent Cab services to IT Company or any other company which provide rent Cab services to others for pick up & drop facility of their employee or another company employee. Generally we take car on rent from persons which are other than company entity.
Question Is service tax payable on Reverse Charge Mechanism on the service of Vehicle taken on rent basis by us ?. Because we take vehicle from person is other than register company ?
The Reverce Charge Mechanism is not applicable when Service Receiver & Service Provider both are in similar Line of business. In your case it seems that yours is a company into renting a cab and getting vehicle from other pesons.
The RCM is not applicable even if yours is a company and provider is Individual.
CAclubindia
