Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: form 3cd :: TDS :: empanelment :: ACCOUNTING STANDARDS :: cpt :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: articles on VAT and GST in India :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
Service Tax »
 IT infrastructure firm of GST under scrutiny for tax evasion
 GST council OKs draft law on relief to states
 GST Network gets notice for avoiding service tax
 GSTN contract may attract tax
 GST Council may discuss tax rate on gold at Udaipur meet
 Govt may rework indirect tax estimates mid-way after GST
 GST Council meeting: States allowed to tweak taxpayer division after consulting Centre
 Government may rework indirect tax maths mid-way after GST entry
 Govt may rework indirect tax mid-way after GST entry
 GST rollout will reduce disparity among states
 GST: E-tailers oppose tax laws

Uber slows down on driver sign amidst service tax and RBI investigations
November, 18th 2014

According to sources, Uber has decided to go slow on new driver additions especially in Mumbai, from where it has been served a showcause notice on its service tax liabilities. The company adds about 30% new drivers in its fleet every month.

"We are going slow on getting new drivers on our platform this week at least and wait for this heat to come down," said an Uber India source on conditions of anonymity. However, the source clarified that the company has not completely stopped registering new drivers in India.

"The new promotional offers which were to come around Diwali for Uber users might also be delayed to avoid the limelight," said another official. Uber had been coming up with free ride offers for Indian users on occasions such as Raksha Bandhan and Mother's Day. Other cities such as Bangalore and Delhi also have not seen promotions as RBI's deadline of October 31 to comply with its guidelines on credit card authorisation nears.

Uber did not reply to a mail sent by ET seeking comments. Its Indian competitors, however, are making the most of the situation. While Ola is offering 100% cash back on first time recharges on Ola money wallets till October 31, TaxiForSure is having a promotional offer of .

`1 rides in cities such as Delhi. Other e-commerce companies such as Amazon, Flipkart and Snapdeal are expected to spend over .

`100 crore on marketing this Diwali to attract new customers. On the issue of service tax, Uber has passed the buck of tax liability to individual drivers, many of whom don't even have a service tax registration. "From all perspectives, this would be the only option that Uber has," said Vaibhav Parekh, partner at law firm Nishith Desai Associates. "Uber has done its job by passing driver details to the authorities, who are unlikely to pursue them." An Uber driver ET spoke to said that most drivers have a PAN card just for an ID proof, but do not pay any taxes. Most individual drivers attached with taxi operators earn between .

`30,00040,000 per month, leaving them outside of the bracket. "Service tax has to be paid by the drivers only if his income exceeds Rs 10 lakh annually. That is very unlikely to be the case for any taxi driver individually," said Jaspal Singh, cofounder of Valoriser Consultants, which provides market research services for transportation companies.

The Indian taxi market is pegged between $6 billion (. `36,000 crore) and $9 billion (. `54,000 crore), of which only 4%to 6% is organised. "We are not sure who is liable to pay the tax—Uber or the cabbies. But someone has to pay," Mumbai Service Tax Commissioner SK Solanki told agencies this week.

Meanwhile Indian entrepreneurs say that abiding by local laws should be mandatory if a company chooses to operate in India.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions