CENVAT ON RCM OF RENT A CAB

[Tushar Kalid]

The co-op credit society of employees hired a bus from a individual to transport its member from office to railway station. Society recovers amount from its member for such service. Is society liable to pay GST on amt recovered from members? Other question as per new notification, is society liable for RCM on bus service taken from individual? and can it claim cenvat?

[PRADEEP SHUKLA]

As per S.No. 9 of Notification 26/2012, service tax is payable on 40 % of the gross amount in case of rent a cab service. The said entry, as it was effective from 01.07.2012 Renting of any motor vehicle designed to carry passengers. 40 % No cenvat credit can be availed on any inputs, capital goods or input services. ... Motor cab means passenger vehicles carrying upto 6 passengers. It may be noted that limited cenvat credit has been allowed for renting of motor cabs.

[Ganeshan Kalyani]

I guess the query is pertaining to GST.

AI Summary

Rent-a-cab taxation: tax imposed on a portion of fares and cenvat credit largely disallowed under service-tax rules. Taxability of rent-a-cab services was structured by taxing a specified portion of the gross amount and disallowing cenvat credit on inputs, capital goods and input services for the renting activity; motor cab was defined as vehicles carrying up to six passengers and only limited cenvat credit was permitted for motor cab renting. The query noted that GST and any revised RCM and credit treatment under GST remained to be addressed.