What is the present limit on which Service Tax is not payable (In case of hire charge on Vehicle)?

Answer 1

The contractor shall assign the job of driving of hired vehicles only to qualified experienced licensed drivers and also assume full responsibility for the safety and security of the officers/officials as well as essential store items while running the vehicle by ensuring safe driving .BSNL shall have no direct or indirect liability arising out of such negligent ,rash and impetuous driving which is an offence under section 29 of IPC and any loss caused to BSNL have to be suitably compensated by contractor.

10. The contractor shall when called upon to do so, place at the disposal of BSNL such number of vehicles as may be required although the number of vehicles so demanded may be more than the number of vehicles he is required to supply for the purpose of execution of the contract at same rate and terms and conditions . The number of such vehicles to be supplied extra will not be more than 25% of original schedule or requirement in the NIT.

11. In no case a vehicle which is not registered for the commercial purpose shall be supplied to BSNL and taxes etc, due on such vehicles shall be liability of the contractor. Then attested copy of R/C and Insurance policy of vehicle supplied under this contract should be submitted to the authorized person of BSNL and will be subject to scrutiny.

12. The contractor shall send the vehicle for periodical servicing at the cost of the contractor , BSNL will not pay any mileage run for such servicing nor any deductions be made for the duration involved in such servicing. The cost of lubricants, repairs, maintenances, taxes, insurance etc. will be to the contractor’s liability.

13. BSNL reserves right to counter offer price against price quoted by the bidder.

14.. Regular checking of meter by the designated transport authority may be done by the contractor, and requisite certificate may be shown to BSNL as and when demanded.

15. The contractor should ensure that at the end of duty; the duty slips are completed and signed by the users. The duty slip in duplicate copy form to be printed and serially numbered by the contractor as per the format given in Section-XI.

Answer 2

Presently if your sales is below 4 lacs per year, you are exempted from charging of Service tax but if you have collected service tax then you have to deposit with the government. Now, in 2007 budget the minimum limit has been enhanced to 8 lacks. Hence, after 1st April, 2007 your limit is 8 lacs and prior to 1st April, 2007 it is 4 lacs

Answer 3

1. For the Current financial year 2006-07, the limit is Rs. 4 Lakhs of taxable services.

2. The threshold limit of service tax exemption for small service providers is being
increased from the present level of Rs.4 lakhs to Rs.8 lakhs with effect from 01.04.2007,
by amending notification No.6/2005-Service Tax, dated 01.03.05 vide notification No.
4/2007-Service Tax, dated 01.03.07.
3. Consequent upon the increase in the threshold exemption limit from Rs. 4 lakh to
Rs. 8 lakh, the limit for obtaining service tax registration has also been increased from
Rs. 3 lakh to Rs. 7 lakh by amending notification Nos. 26/2005-Service Tax and
No.27/2005-Service Tax, both dated 07.06.05 vide notification Nos. 5, 6 & 7/2007-
Service Tax, dated 01.03.07.

4. If your turnover of taxble service during F. Y. 2006-07 does not exceed Rs. 4 Lakhs, you are not liable to collect / pay Service Tax in F. Y. 2006-07.

5. If your turnover of taxble service during F. Y. 2006-07 does not exceed Rs. 8 Lakhs, you are not liable to collect / pay Service Tax in F. Y. 2007-08.
Once you cross the turnover of taxable services of Rs. 7 Lakhs in F. Y. 2007-08, you have to obtain registration. From turnover of Rs. 8 Lakhs, you have to collect / pay Service Tax.