What is the service of “hiring of means of transport”?
The services of providing a hire or lease, without the transfer of right to use is covered by this rule. Normally the following will constitute means of transport:-
i) Land vehicles such as motorcars, buses, trucks;
iv) Vehicles designed specifically for the transport of sick or injured persons;
v) Mechanically or electronically propelled invalid carriages;
vi) Trailers, semi-trailers and railway wagons.
The following are not ‘means of transport’:-
i) Racing cars;
ii) Containers used to store or carry goods while being transported;
iii) Dredgers, or the like.
What if I provide a service of hiring of a fleet of cars to a company on an annual contract? What will be place of provision of my service if my business establishment is located in New Delhi, and the company is located in Faridabad (Haryana)?
This Rule covers situations where the hiring is for a period of upto one month. Since hiring period is more than one month, this sub-rule cannot be applied to the situation. The place of provision of your service will be determined in terms of Rule 3 i.e. receiver location, which in this case is Faridabad (Haryana).