TRANSPORT CARRIAGE V/S RENT A CAB

[abbas mukhi]

SIR,

AT PRESENT SERVICE TAX ON RENT A CAB SERVICE COULD NOT BE OBTAINED AND IT BECOMES EXPENSE FOR THE COMPANY.

AS PER SERVICE TAX PROVISIONS 'CONTRACT CARRIAGE FOR PASSENGER' IS EXEMPTED (FOR NON AC) VIDE NOTIFICATION NO.6/2014-ST DATED 11.07.2014..

CAN WE PLAN TO SWITCH OVER FROM RENT A CAB TO CONTRACT CARRIAGE.SO AS TO SAVE EXPENSE ON SERVICE TAX PAID UNDER RCM ON RENT A CAB

THANKS...

AI Summary

Switching to 'Contract Carriage' won't save on service tax; exemption only for public transport, not specific hires. A query was raised about the possibility of switching from a 'Rent a Cab' service to a 'Contract Carriage' service to save on service tax expenses, given that non-air-conditioned contract carriages for passenger transport are exempt under Notification No. 6/2014-ST. The responses clarified that the exemption applies only to public transport systems, not to services hired for specific purposes like employee transport. Both respondents agreed that the exemption does not cover charter or hire services, indicating that the company would not benefit from the exemption in this context.