vehicle finance is taxable ??, Service Tax

[Mehul Pandya]

Sir,

My query is our is partnership firm willing to start car finance activity.

Is this activity is taxable as we are partnership ??

if yes then pl. guide its category and tax rate..

Posts / Replies

[Pradeep Khatri]

Dear Mehul,

Such service may come under the purview of Business Support Services/Business Auxiliary Services or Services other than 119 service. Tax would be applicable on the gross value of taxable services and normal tax rate will be charged. Notification 30/2012-ST/20-06-2012 w.e.f. 01-07-2012 would not be applicable in your case.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)