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Reverse charge

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26 July 2012 We are PVT LTD Co, we received bills towards renting of car.(1-7-2012)
Party is charges service on 40% of bill amount, in that case what is our service tax liability as a service receiver ?

1000 bill amount
49 service tax (40%)
----
1049 total bill amount


26 July 2012 Your Liability will be 4.944% on Bill Amount i.e. on 1000/-



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