Reverse Charge

[shubham sinha]

Dear Sir , A State Society availing service of monthly hiring vehicle through a agency for its staff and society program .Payment for 2013-14 is 5,11,972/- (in different amt. through out the yr.) . Is there is any liability of society for deduct service tax.

AI Summary

Government Society Exempt from Reverse Charge on Vehicle Hire Due to Non-Business Status, Says Tax Advisor A government-owned state society inquired about its liability for deducting service tax on hiring vehicles for staff and programs, with payments totaling 5,11,972/- for 2013-14. The society, focused on public welfare and not engaged in business activities, sought clarification. A tax advisor explained that the partial reverse charge mechanism applies if the service receiver is a business entity registered as a body corporate. Since the society is not conducting business activities, the reverse charge is not applicable in this case.