Rent a Cab Service Query:

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  1. Mr Ranganath

    Mr Ranganath New Member

    Dear Experts,

    One of our Client being an Individual (Mr M, having turnover of Rs 1.50 Crore) service provider is providing Rent a Cab service to another Partnership firm (as a sub vendor), that partnership Firm is providing Cab service to various corporates (only to Pvt ltd and Ltd Co) and Firm is not charging Service Tax on Invoices made to corporates as corporates are paying under Reverse Charge Mechanism (notification No 30/2012) and also Partnership Firm is not taking any input tax credit.

    My Query is whether my client (Individual Mr. M) is required to take Service Tax registration as he provides his 100% service to that Partnership Firm as a sub vendor and he does not own any cabs but he takes on rent from various sub-vendors and what service he provides that 100% service is given to corporates through that partnership firm which is finally taxed under RCM.

    I feel as there is no revenue loss (as in single chain 100% service provided to Firm and Firm in turn gives to Corporates) to the Govt and its not necessary to take ST Registration by Individual Mr M. is my view is correct?

    Various Sub vendor-- > Mr. M--> Partnership Firm- > Corporates

    Please advice me , ST regn is required or not to Mr M.?

    Thank u in advance.
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