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

[Arun Kumar Singh]

If state society is a government body then no need to pay service tax under reverse charge system. only business entities are liable to pay service tax for receiving motor vehicle service.

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.