Home Case Index All Cases Service Tax Service Tax + AAR Service Tax - 2016 (1) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (1) TMI 25 - AAR - Service TaxLevy of service tax on the proposed car lease scheme (of providing vehicles to employees) under Section 66B of the Finance Act, 1994 - applicant is an employer and the applicant is providing some service to its employees by giving an option to all such employees to avail of a car. - Held that:- it is making available a car for the use of the employees during the term of their employment for which it is charging only the car rent which the applicant is paying to the car leasing company from which it has hired the car. It is not charging a rupee more or a rupee less. There is also an option given to the employee to ultimately purchase the car at the end of his employment and the employee would also be under the obligation to purchase the car at the rate which is a written down value. That by itself, can not be an exception. What is relevant is, as to whether a service is being provided by the applicant to its employees which service is "in the course of" or "in relation to" his employment. There can be no dispute that the service of "making available" a car to the employee is being rendered by the applicant. In this context, both the conditions are fulfilled which are conditions in clause (b) of Section 65B (44). Whether the car given for official use, for personal use or use for both will not be making any difference. In view of the clear-cut language of Section 65B (44) (b), we answer the question accordingly. - Not liable to service tax.
|