reverse charge

[shubham sinha]

A state society is receving services of monthly hire vehicle for the society staff and its program through a agency .whether society should deduct service tax or not, plz suggest me in this regard. total expenditure for the year 2013-14 is 5,11,972/-reverse charge is applicable or not

AI Summary

State Society Exempt from Service Tax on Hired Vehicles if Classified as Government Body Under Reverse Charge Rule A state society inquired about the applicability of reverse charge for service tax on monthly hired vehicle services for its staff and programs. The total expenditure for the year 2013-14 was 5,11,972. The response clarified that if the state society qualifies as a government body, it is not required to pay service tax under the reverse charge system. Only business entities are liable for service tax when receiving motor vehicle services.