BENGALURU: Uber and Ola drivers associated with both companies cab-leasing programmes will see a hike in the amount of tax paid on leasing under the new GST regime. Drivers associated with both the cab-hailing applications leasing programmes pay approximately Rs 825 a day as a part of the rental fee, this amounts to around Rs 25,000 a month. However, post GST, the drivers are likely to see a significant hike in monthly EMIs according to analysts. "This 29 per cent to 43 per cent GST rate range can be explained by understanding that there is a service charge of around 18 per cent plus over 20 per cent vehicle sale tax on the leased vehicles that comes under GST. "There is a lack of transparency prevalent between the driver unions and the cab-hailing apps when it comes to discussing incentives, per km rates and payment hikes and in this case the GST rates.

Source: Economic Times July 03, 2017 01:30 UTC