Hire vehcile on lease

[Samik Chaudhuri]

Sir

Our logistics company wants to hire 6nos truck with agreement for monthly fixed amount from a Company. Now i would like to know whether this fixed amount attracts service tax or not? If attracts who will be liable to pay service tax? Please advice me at earliest.

With thanks

Samik Chaudhuri.

AI Summary

Service tax on vehicle hire applies unless hire qualifies as goods transport agency or state transport exemption.
Fixed monthly payments for hiring trucks are generally subject to service tax as a declared service, with the service provider liable to collect and deposit the tax; exceptions exist where the hire qualifies as service to a goods transport agency or to a state transport undertaking for vehicles carrying more than twelve passengers under the relevant notification, in which case service tax may not apply.