SERVICE TAX ON RENT A CAB AND MAN POWER SUPPLY

[Rajeev Khulbe]

GOOD EVENING SIR,

WE ARE TAKING SERVICE UNDER RENT A CAB. SIR I WANT TO KNOW ONLY THAT

1- IF SERVICE RECEIVER IS FIRM ( Proprietorship concern OR Partnership firm WHO ARE NOT REGISTER AS LLP) THEN WHO WILL PAID SERVICE TAX ON RENT A CAB AND MAN POWER SUPPLY.

THANKS FOR VALUABLE REPLY

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

You have correctly understood and nicely explained. Your reply is precise of the replies of all experts and you have conveyed to the point without going into complicated details of 'What is business entity ? What is body corporate ? What is the eligibility criteria of RCM ?' This is what Sh.Rajiv Khulbe wanted in simple words.

[Rajeev Khulbe]

THANK YOU SIR SPECIALLY TO Sh.Ganeshan Kalyani Ji, & KASTURI SETH & ALL OF MY FAVOURITE EXPERTS.

[KASTURI SETHI]

Sh. Rajeev Khulbe Ji,

I am overjoyed to read that finally you are satisfied with the replies of experts. Appear again with such thought provoking query ( Thorny query ?) for brain exercise.

AI Summary

Reverse charge applicability: non body corporate recipients are not liable; providers pay unless exempt under SSI rules.
Service tax liability for rent a cab and manpower supply depends on the charge mechanism and the recipient's status. If the recipient is a body corporate and the provider is an individual, proprietorship, partnership, HUF or AOP, reverse charge applies and the recipient bears specified liability; for manpower supply this can be 100% on the recipient irrespective of provider turnover. If the recipient is not a body corporate, reverse charge does not apply and the provider is liable under forward charge, subject to the small service provider exemption.