Taxi Service

[MITSUI PRIME ADVANCED]

Respected sir,

 

Please provide your advice related to Taxi Service at present in our compnay following type of tax running 01.Taxi Service Reated to Staff ,( comming form Gurgaon and various location to factory and back ) We have liable to Service Tax deposit or not  Becasue as per notificaiton  using words 'Passanger'

Please provide your valuable advice

Regards

 Arjun Sachdeva

 

[YAGAY andSUN]

Yes sir, your company is liable to pay the tax under partial reverse charge mechanism as the word "Staff" will be treated at par with the word "Passanger".

No way out. Just pay the tax and .......................... relax.

AI Summary

Partial reverse charge applies to staff taxi services, treating staff as passengers and creating a service tax liability. Staff shuttle/taxi services are taxable because employees are treated as passengers, bringing the service within the partial reverse charge mechanism so that the recipient company must pay the service tax liability under reverse charge.