Passenger Tax on rent a cab - Gurgaon

[Krishan Gopal]

Dear Expert,

We reimburse passenger tax of ₹ 9500/- monthly to our bus (20 seater) transporter. Further, he is not provide the original challan copy to us and said that the original copy is kept with department.

Whether it is correct or not.

Gopal

[B. Naga Rami Reddy]

Service tax is payable by you in this case for hiring 20 seater under Reverse charge basis as per Notification No. 30/2012-ST.

AI Summary

Reverse charge service tax applies to hiring of a multi-seat bus, making the recipient liable under the notification. The recipient of the transport service is liable to pay service tax on hiring a 20 seater vehicle under the reverse charge mechanism as per Notification No. 30/2012 ST; the payer's reimbursement and the transporter's assertion that the original challan is held by the department do not alter this stated liability.