12-10-2011, 07:54 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Information Consultant</i>
<br />Student of law r u confirmed that rate of tax on payment against rent a car is 2 % and it is fall under transport buisness not in services ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Firstly, I refer to your words, "fall under transport business and not in services".
Transport service is a category of service and it is also taxed as services u/s 153(1)(b). Para (2) of Division III of Part III of First Schedule makes it clear as it gives the rate of tax deducted u/s 153(1)(b).
By confirm if you mean to say that whether I have backing of any circular or case law, the answer is no. This is why I used the words "I think". However on plain reading of law it suggests that the rate applicable will be 2%. It is pertinent to note that legislature has used the word transport services not even public transport services (that may give rise to contention that should private transport contractors be treated as public transport).
So I am of the opinion that tax deduction should be @ 2% under s.153(1)(b)
<br />Student of law r u confirmed that rate of tax on payment against rent a car is 2 % and it is fall under transport buisness not in services ?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Firstly, I refer to your words, "fall under transport business and not in services".
Transport service is a category of service and it is also taxed as services u/s 153(1)(b). Para (2) of Division III of Part III of First Schedule makes it clear as it gives the rate of tax deducted u/s 153(1)(b).
By confirm if you mean to say that whether I have backing of any circular or case law, the answer is no. This is why I used the words "I think". However on plain reading of law it suggests that the rate applicable will be 2%. It is pertinent to note that legislature has used the word transport services not even public transport services (that may give rise to contention that should private transport contractors be treated as public transport).
So I am of the opinion that tax deduction should be @ 2% under s.153(1)(b)
