Effective rate of service tax for Rent-a-cab Scheme Operator - 009/04 - Service Tax

Rescinded by Notification No. 2/2006 - Service Tax dated 1/3/2006

Effective rate of service tax for Rent-a-cab Scheme Operator

[Notification No. 9/2004-S.T., Dated. 9/7/2004]

[As amended by Notification No. 12/2004-ST, Dated 10/9/2004]

In exercise of the powers conferred by section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable service provided by a rent-a-cab scheme operator in relation to renting of a cab, from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to forty per cent, of the gross amount charged from any person by such operator for providing the said taxable service.

¹[Provided that the said exemption shall not apply in such cases where-

(i)  Credit of duty paid on inputs or capital goods has been taken under the provisions of the Cenvat Credit Rules, 2004; or

(ii)   such rent-a-cab scheme operator has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the  20th June, 2003 [G.S.R. 503 (E), dated the 20th June, 2003].]

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Note :

1. Has been inserted vide Notification No. 12/2004 dated 10/9/2004