https://www.taxtmi.com/forum/issue?id=111513 Applicability of service tax or VAT on car hire depends on whether the owner retains possession and effective control. If the owner provides driver and bears insurance, maintenance and related obligations, the transaction is a service liable to service tax. If both possession and effective control pass to the user, the right to use is a deemed sale liable to VAT. Characterisation is a question of fact determined from the contract and surrounding circumstances. en-us Thu, 16 Feb 2017 14:08:26 +0530 Thu, 23 Jan 2025 15:56:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=111513 Applicability of service tax or VAT on car hire depends on whether the owner retains possession and effective control. If the owner provides driver and bears insurance, maintenance and related obligations, the transaction is a service liable to service tax. If both possession and effective control pass to the user, the right to use is a deemed sale liable to VAT. Characterisation is a question of fact determined from the contract and surrounding circumstances. Discussion-Forum Service Tax Thu, 16 Feb 2017 14:08:26 +0530 https://www.taxtmi.com/forum/issue?id=111513