Motor Vehicle Designed, Service Tax

[MITSUI PRIME]

Dear Sir,

Our compnay hired a bus as per contract permit for transportation of employees , from near by residance to factory and back

it is cover under notification no 30/2012 dt 20.06.2012

any tax is atract

please provide your valuable suguation related for the same.

Rgards

Arjun Sachdeva

Posts / Replies

[Radha Arun]

Service tax is payable  on 40% of the amount charged. 

If the entity from which you have hired the bus is a individual, HUF or partnership, the service tax on 40% of the amount charged is payable by you to the government on reverse charge basis under notification no 30/2012.

If the entity is other than an individual, HUF or partnership, the service tax is payable by that entity and will be recovered from you on its bill.