input service on rent-a-cab, Service Tax

[vijay kumar]

With reference to definition of input service under Rule 2(l)(B), please clarify whether "rent-a-cab" is eligible input service for providing BAS service. It looks that as per the said rule, general insurance, rent-a-cab, motor vehicle repair and supply of tangible goods services (insofar as they relate to a motor vehicle) are eligible for credit only when the vehicle is registered in the assessees name. Does it mean that per se, credit on these services is not eligible for all other output services. Or, does it mean that this restriction is only for the services mentioned under Rule 2(2B) of CCR, 2004. As per the Board Circular issued in Jan, 2010 rent-a-cab service is essential for BPO operations (BAS service).

 

 

Posts / Replies

[sv bhasker]

Sir,

It appears rent-a-cab service is not  input service  for providing BAS as rightly analyzed by you. It is an input service for providing out door catering, GTA , rent a cab itself, cargohandling etc,where motor vehicle  are used invariably.