Hiring of vechile

[Asked by Guest]

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

AI Summary

Rent-a-cab service: abatement limits taxation to a portion of value and cenvat credit restricted unless vehicle constitutes a capital good.
Any motor vehicle designed to carry passengers constitutes rent-a-cab service and is taxable unless in the negative list. A statutory abatement reduces the taxable value of rent-a-cab service, but that abatement is forfeited if the provider avails Cenvat credit on inputs, capital goods or input services. Rent-a-cab was excluded from the definition of input service, generally barring Cenvat credit, except where the vehicle is a capital good registered in the provider's name and used for specified output services.