Applicability of service tax

[Guest]

Whether motor vehicle running for hire on kilometer basis to BSNL attracts service tax ?. If attracts, under which classification of services the same to be taxable.If not attracts , the reason for the same.

AI Summary

Service Tax Applicability on Kilometer-Based Motor Vehicle Hire for BSNL Under Finance Act, 1994 Questioned A query was raised regarding the applicability of service tax on motor vehicles hired on a kilometer basis for BSNL. One response suggested consulting the TMI-Commentary on the 'Rent-a-Cab Service' under the Finance Act, 1994. Another response referenced a case where it was held that if multiple vehicles are provided rather than a single vehicle being hired, it does not fall under 'rent-a-cab' services. Additionally, it was argued that transporting BSNL employees does not qualify as a tour, potentially exempting it from service tax.