TaxTMI 
TaxTMI 
As per service tax law is a 40 seater bus covered under rent a cab and is it eligible for abatement and is service tax to be discharged on rcm basis
service tax rent a cab
16 Feb 2019 
5 Replies 
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Rent-a-cab classification can trigger reverse charge liability and permit abatement for passenger bus hire services.
A passenger bus designed to carry more than twelve passengers qualifies as a rent-a-cab service; such hire is subject to the reverse charge mechanism under the controlling notification and is eligible for abatement where provided. Although statutory service definitions were removed in the negative-list reform, former definitions and administrative guidance remain relevant for identifying service character; taxpayers may rely on prior service codes and board circulars to support rent-a-cab classification, abatement entitlement, and reverse charge treatment for bus-hire transactions. (AI Summary)
A passenger bus designed to carry more than twelve passengers qualifies as a rent-a-cab service; such hire is subject to the reverse charge mechanism under the controlling notification and is eligible for abatement where provided. Although statutory service definitions were removed in the negative-list reform, former definitions and administrative guidance remain relevant for identifying service character; taxpayers may rely on prior service codes and board circulars to support rent-a-cab classification, abatement entitlement, and reverse charge treatment for bus-hire transactions. (AI Summary)