Service Tax on vehicle hire

This query is : Resolved 

14 March 2008 We are a service provider company(energy sector) and availing service tax credit. We are providing service for a goverment organisation and we are using our company van and raising seprate bill for the van. My question is that we should charge service tax @4.95% or 12.36% for the van.

14 March 2008 I think your service is covered under Rent-a-cab service and accordigly taxable on @ 4.95% after claiming abatement of notification 1/2006 but after claiming 1/2006 you are not eligible of CENVAT.

on the other hand if your are paying tax on full rate then u will claim CENVAT.



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