Taxing times

Cab owners, operating on a point-to-point basis, including those with contracts with some companies, do not come under the VAT laws.

A concept prevails in the VAT department that whenever a chauffeur-driven cab with a tourist permit is rented out, there is a sale by way of deemed transfer of the right to use goods. Cab owners, operating on a point-to-point basis, including those with contracts with some companies, do not come under the VAT law as they are liable to pay service tax under the Central law and it is levied on gross turnover.

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Manohar Lal
Delhi

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