reverse charge rent a cab

[Arihant Shah]

Please update the details of reverse charge applicable on Cab Hiring Services. Is there any critiria of small cab (taxi) / big cab (buses) for taxability.

AI Summary

Reverse Charge on Cab Services: No Distinction Between Small and Big Cabs for Tax Purposes Under Section 66D A query was raised about the applicability of reverse charge on cab hiring services, questioning whether there is a distinction between small cabs and big cabs for tax purposes. Respondents clarified that no such distinction exists and that the reverse charge mechanism applies when services are availed from renting or hiring motor vehicles. The service receiver must pay service tax on 40% of the taxable amount if the provider is an individual, HUF, partnership firm, or AoP. Additional conditions for reverse charge include the service receiver being a business entity registered as a corporate body and not in a similar line of business.