Please clarify this clause in Service Tax Notification No. 30/2012.
S.No. Description of a Service Percentage of service tax payable by the person providing service Percentage of service tax payable by the person receiving service (b) in respect of services provided or agreed to be provided by way of renting or hiring any motor vehicle designed to carry passenger on non abated value. 60% 40%
14 August 2012
There is an abatement eligible for service provider on 60% vide entry 9 of notn 26/2012 -ST- dt 20.06.12. This notn has a relevance with your query, and you have omitted (a) in the query for abated value.
Therefore, if the service provider (rent-a-cab) has availed 60% abatement for his output service, the service receiver has to pay 100% service tax under reverse charge.
Now the answer for your query, (b) if the service provider has not availed the abatement, then on the non-abated value of his bill, 60% service provider has to pay and 40% service receiver has to pay under reverse charge.