renting of mid size transport vehicle ( tata 407 etc.)

[vinay kumar]

dear sir,

one of  our client  providing transportation vehicle on rent to courier agencies and now he wants to register under service tax.

therefore I wants to know that in which head the above service  will categorized.

Thanks

Vinay kumar

AI Summary

Guidance on Service Tax for Vehicle Rental under Section 66E of Finance Act 1994: Abatement and Reverse Charge Options Explained. A client providing transportation vehicles on rent to courier agencies seeks guidance on service tax registration. The service falls under 'Renting of Motor Vehicle' as per clause (f) of section 66E of the Finance Act, 1994. The definition of 'motor vehicle' is broad, covering the client's vehicles. A 60 percent abatement is available, and if the client is not a registered corporate entity, the service receiver pays tax on 40 percent of the service value under the Reverse Charge mechanism. Alternatively, the client can opt not to avail the abatement and pay tax on 60 percent, passing it to the receiver.