Service tax applicabilty of truck hired on monthly contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2012 We have made an contract with an person/service provider that he will provide us service on monthly contrat basis suppose on Rs. 50000/- besides this we shall give him diesel ( Oil) for running the truck . salary / Cost of the diver will be paid by the contractor .

In this regard , please advise in which this service shell be deemend either in GTA or work contract or any other and how much % of service tax will be paid by us .

M.Verma

Amol S Joglekar

Amol S Joglekar (Expert)
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01 September 2012 Refer the reverse charge circular

CA NIKHIL OZA

CA NIKHIL OZA (Expert)
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04 September 2012 such service will be considered as GTA only..in such case 75% abatement is available...As such only on 25% of gross amount charged..As such s.tax will be payable on 25% of Rs50000...

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