we pay taxi charges fir plying our customers . These taxi are metered cab, would be liable to pay service tax under reverse charges on such charges paid
service tax on taxi charges
hubert fernandes
Service Tax Exemption: Metered Taxis Exempt, Radio Taxis & A/C Contract Carriages Taxable from 2014 & 2016 A forum discussion addressed whether service tax applies to taxi charges paid for transporting customers. It was clarified that service tax is not applicable to metered taxis, which remain exempt. However, radio taxis, such as those operated by companies like OLA and Uber, became taxable from October 1, 2014. The discussion also covered contract carriages, noting that non-air-conditioned ones are exempt, while air-conditioned ones are taxable from June 1, 2016. References to specific notifications were provided for further clarification. The conversation concluded with a mention of a relevant case law involving radio taxis. (AI Summary)