Auto Servises

[kamal chordia]

Dear Sir

Please note that transportation of passengers by metered cab, radio taxi and auto rickshaws is exempted from leavy of service tax.

If  a  company using TATA Maic auto (4 Wheels) for official use  on monthly rent basis. I.e. company pay him deasal charges and lump sum rent on per day in monthly bill

Please clarify that service tax applicable on above services under reverse charges Notification No. 30/2012 or not.

Thanks & regards

Kamal

[YAGAY andSUN]

Yes, reverse charge is applicable in such kind of transactions.

AI Summary

Reverse charge applies to monthly hiring of a four wheeled auto for company use, creating recipient service tax liability. Hiring a four wheeled auto (TATA Magic) on monthly rent for official company use, with the company paying fuel and lump sum rent, attracts service tax liability on the recipient under the reverse charge mechanism; this contrasts with the exemption applicable to passenger transport by metered cabs, radio taxis and auto rickshaws.