We are availing the services of taxis from different operators on tariff basis for regular purposes also some times for specific purposes. However there is no specific contract is being awarded to any taxi operator. Taxi Operators issues bill without charging service tax (Many of them have not taken the registaration being a SSI). My query is does such of service under Fixed Tariff fallsunder the category of Rent a cab. How the company will know whether the taxi operator is availing CENVAT or not. Some times he gives the service tax with full rate.
Thanks
Service tax applies to taxi services hired on a tariff basis, with a 60% abatement available. No CENVAT credit allowed. A user inquired about the applicability of service tax on taxi services hired on a tariff basis without specific contracts. The response clarified that services involving the renting of passenger vehicles, excluding those on the negative list like stage carriages and metered cabs, are taxable under the rent-a-cab category. A 60% abatement is available, meaning tax is paid on 40% of the service value, provided no CENVAT credit is claimed. Amendments to the CENVAT Credit Rules have generally excluded rent-a-cab services from credit eligibility unless the vehicle is a capital good used for specific services. (AI Summary)
TaxTMI 
TaxTMI 
