Imposition of VAT on Car / Bus hire_AP VAT

The Govt. Of AP has passed an ordinance (on 15.09.2011) and a subsequent memo mandating the application of VAT on Car and Bus rentals with effect from 8.11.2011.  The Composite VAT of 5% shall be levied on the billing inclusive of service tax (currently being applied at 4.12%).

A copy of the memo issued by the Principal secretary, Revenue, Govt. Of AP, is enclosed for your reference

-- By,
Praveen Boda

VAT on Cab Services.pdf