https://www.taxtmi.com/caselaws?id=311505 Vehicle leasing was tested on the terms of the agreements and the actual transfer of control and possession. The Tribunal held that the clients did not obtain full effective control or exclusive legal possession of the vehicles, while the lessor retained ownership-linked responsibilities such as insurance and maintenance. On that basis, the arrangement was characterised as hiring or renting of motor vehicles for consideration and not a transfer of the right to use goods amounting to a deemed sale. Payment of VAT on lease rent did not by itself exclude service tax where the ingredients of rent-a-cab service were otherwise met, and the earlier decision in the same factual matrix was followed. The service tax demand, interest, and penalty were sustained. en-us Thu, 23 Feb 2023 00:00:00 +0530 Thu, 21 Mar 2024 13:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=311505 Vehicle leasing was tested on the terms of the agreements and the actual transfer of control and possession. The Tribunal held that the clients did not obtain full effective control or exclusive legal possession of the vehicles, while the lessor retained ownership-linked responsibilities such as insurance and maintenance. On that basis, the arrangement was characterised as hiring or renting of motor vehicles for consideration and not a transfer of the right to use goods amounting to a deemed sale. Payment of VAT on lease rent did not by itself exclude service tax where the ingredients of rent-a-cab service were otherwise met, and the earlier decision in the same factual matrix was followed. The service tax demand, interest, and penalty were sustained. Case-Laws Service Tax Thu, 23 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=311505