Rashmi (Company Secretary) (49 Points)
04 June 2010One Pvt Ltd Co. has entered in to an agreement with Public Ltd Co. (Mr. X is director in both the Companies). This agreement is for car hiring. Share Capital of both the Companies are more than 1Crore. Under s.297, private company is not required to obtain an approval but public company is required to obtain Central Government. Company has not paid Service Tax for this rental charges.
Whether S.297 is applicable for Car hiring (i.e. as Servies)? Pls clarify.
Shruti Chawla
(CS)
(258 Points)
Replied 05 June 2010
Section 297 (1)(a) says for the sale , purchase or supply of any goods, materials or services.
so as per my understanding car hiring would come under the definition of services.
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