GST tax rate for renting of motorcab or taxis services



Rahul Rai
watch_later 1 year, 1 month ago

How much tax should be charged on availing the services of a motorcar or taxi? Whether input credit is available?

Tax rates are for hiring cab with driver or renting a taxi for full day without driver?


Comments:

1 Answer

Pulkit Sharma watch_later 1 year, 1 month ago
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Renting of a motorcab or taxi is to be charged at 5% and no input credit of tax is available.

Whether you hire with driver or without, tax rate will be 5% and ITC is not available.

Transportation services by a radio taxi or AC carriage is also taxed at 5% without ITC.


Comments:

Whether it included aggregators such as OLA and UBER or it is only for the individual taxi owners? - Rahul Rai
Service by OLA and UBER is not that a taxi, but they are only aggregators and are covered under seperate category. I think tax to be charged by them falls under commission or marketing services and will be charged at 18% with full ITC. - GST Payer
What if the Company staff submits bills of Uber ola or any taxi paid by hiin which no GST hs been charged. is company liable to pay GST under RCM in that case. - Prakash Joshi


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