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)
Follow

01 September 2012 Refer the reverse charge circular

CA NIKHIL OZA

CA NIKHIL OZA (Expert)
Follow

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...

Upgrade to CAclubindia Pro. Subscribe Now!