ST on engaging a State Corporation Bus on tourinsm purpose

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..... ST on engaging a State Corporation Bus on tourinsm purpose
Query (Issue) Started By: - P S SATYA NARAYANA Dated:- 13-11-2012 Last Reply Date:- 14-11-2012 Service Tax
Got 2 Replies
Service Tax
Dear Sir, We are a Public Limited Company. Recently we have engaged a State Road Transport Corporation Bus for our employees to go to Goa on a Tour. Whether the above activity attracts Service T .....

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..... ax and we need to pay it under Reverse Charge Reply By Seetharaman K C: The Reply: Dear Sir The only transport by contract carriage which is covered in Mega Exemption Notification no 25/2012 dated 20-06-2012 is as follows : " a contract carriage for the transportation of passengers, excluding tourism, conducted tour, charter or hire" The above activity would be subject to service tax but not .....

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..... under the reverse charge mechanism as the Notification No. 30/2012-ST dated 20-06-2012 provides that services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers to any person who is not in the similar line of business by any individual, Hindu Undivided Family or partnership firm, whether registered or not, including association of persons, located i .....

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..... n the taxable territory to a business entity registered as body corporate, located in the taxable territory would be subject to reverse charge under the notification. In this case the service provider is not an individual, HUF, partnership firm or AOP therefore reverse charge mechanism will not apply. Service tax therefore needs to be paid by the service provider only. Reply By Pradeep Khatri: T .....

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..... he Reply: Reverse Charge, will not be applicable in this scenario. Service Provided will have to charge service tax and deposited it in Government's account.
Discussion Forum - Knowledge Sharing .....

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