company hiring taxi car

[Dalia Felix]

Dear members,

our company hires  taxi cars from the nearby taxi stand (as and when required) for the travel of officers. Do you think that the 'reverse charge' provisions are applicable in this case? Why?

AI Summary

Reverse Charge Mechanism: Taxi Hire for Officer Travel Debated, Exemptions for Radio and Meter Taxis Cited A company inquires about the applicability of the reverse charge mechanism for hiring taxi cars for officer travel. One respondent cites Notification No. 30/2012-ST, suggesting reverse charge applies, with the percentage varying based on whether the service provider claims abatement. Another respondent refers to Notifications No. 30/2012-ST and No. 25/2012-ST, arguing that without a formal contract, the hiring does not attract reverse charge service tax. It is also noted that radio taxis and meter taxis are exempt from this tax under the reverse charge mechanism.