Query on Rent a ceb service

[Sumeet Tholle]

Dear Sir,

My client who is hotel also arranges vehicles from outside for their customers.

He charge fix rate vehicle wise for Airport/Railway station pickup and drop.

Along with this, he charges vehicle wise at fixed rates to visit Ellora, Ajanta or near by places.

In fact, he has prepared vehicle wise/place wise chart of charges.

Now, department demanding Service Tax under 'Rent a Cab service' for Period April 2008 to March 2012 which we have never charged to our customer.

Is this 'rent a cab' service.

We are relying on following judgement,

1. Surya Tours and Travels Vs CCE (2009) 19 STT 147 = 2008 (10) TMI 123 - CESTAT, NEW DELHI

2. Sri Sai Krishna Travels Vs CCE (2010) 24 STT 245= 2009 (9) TMI 515 - CESTAT, BANGALORE

Pl. Guide.

Thanks and Regards

Sumeet C. Tholle, CA.

AI Summary

Hotel Faces Service Tax Demand for Vehicle Arrangements; Advised to Review 'Rent-a-Cab' Service Changes Since 2008 A hotel arranges vehicles for customer transportation and charges fixed rates for pickups, drop-offs, and local tours. The tax department is demanding service tax under 'Rent a Cab service' for the period from April 2008 to March 2012, which the hotel never charged to customers. The hotel is relying on past judgments to contest this demand. However, a consultant advises that these judgments have been overruled by the Punjab and Haryana High Court and the Madras High Court. The consultant suggests checking for any changes in the 'Rent-a-cab' service profile since 2008.