Applicability of service tax, Service Tax

[SAM KURUVILLA]

Whether motor vehicle running for hire on kilometer basis to BSNL attracts service tax ?. If attracts, under which classification of services the same to be taxable.If not attracts , the reason for the same.

Posts / Replies

[Surender Gupta]

Kindly see TMI-Commentary on - Scope of "Rent-a-Cab Service" within the provision of Chapter V of Finance Act, 1994 (Service Tax)

[Madhukar N Hiregange]

In my view there maybe a doubt in this reagrd. IN the case of Kuldip Singh Gill it was held that when the vehicle itslef was not hired but a number of vehicles were tobe provided, the same could not come under rent a cab. Further the transportaiton of employees of BSNL cannot be said to be tour. Therefore may not be liable at all.