Travelling Exp-Covered in S.Tax

[kamal chordia]

If any company take  Taxi on hire for his employee to visit from head office to factory for official visit, then in that case the payment of taxi hire made by company being part of travelling exp.

Is service tax applicable under reverse charge  Notification No. 30/2012 on this transction.

 

Thanks

 

Kamal

[Guest]

Yes, this transaction covered  under reverse charge Notification No. 30/2012 - ST.

[YAGAY andSUN]

If it is radio tax or meter taxi, then, It would not come under reverse charge mechanism.

[Amar Chand]

if service tax is already chagred in invoice travlling mode can we take credit of the same amt.

AI Summary

Reverse charge on taxi hire may apply to employer-paid staff travel, except radio or metered taxis; input credit query remains. Whether employer payment for taxi hire for employee travel from head office to factory attracts service tax under the reverse charge mechanism: one view affirms coverage under reverse charge Notification No. 30/2012, another clarifies radio taxis or metered taxis are excluded from reverse charge, and a related issue asks about claiming input tax credit where service tax was charged on the invoice.