Services provided by Renting of Motor Vehicle - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 7 Services provided by Renting of Motor Vehicle Scope of Reverse Charge Service - ( Notification No. 30/2012- Service Tax, Part (II) Table Sl. No.7 ) On abated Value From 1.7.2012: In respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business Services provided by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory; Liability on:- Service Provider Service Recipient % of tax Nil 100% On Non Abated Value From 1.7.2012 to 30.9.2014 In respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business Services provided by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory; Liability on:- Service Provider Service Recipient % of tax 60% 40% From 1.10.2014 - Notification No.10/2014-Service Tax, dated 11th July, 2014 In respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on non abated value to any person who is not engaged in the similar line of business Services provided by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located in the taxable territory to a business entity registered as body corporate, located in the taxable territory; Liability on:- Service Provider Service Recipient % of tax 50% 50% Meanings and Definitions: Section 65B(17) business entity means any person ordinarily carrying out any activity relating to industry, commerce or any other business or profession; Rule 2 (cd) of Service Tax Rules, 1994, Partnership firm includes Limited Liability Partnership ( LLP ). Rule 2 (bc) of Service Tax Rules, 1994, body corporate has the meaning assigned to it in clause (7) of section 2 of the Companies Act, 1956 (1 of 1956); Clause (7) of section 2 of the Companies Act, 1956 (1 of 1956) . - Body corporate or corporation ' includes a company incorporated outside India but does not include- (a) a corporation sole; (b) a co- operative society registered under any law relating to co- operative societies; and (c) any other body corporate (not being a company as defined in this Act) which the Central Government may, by notification in the Official Gazette, specify in this behalf.