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Reverse charge on rent a cab (Service Tax)

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This query is : Open

Author : Anonymous

( Author )
31 August 2012

We have hired one Individual for vehicle hiring.
Suppose Bill raised by service provider is of Rs.10000/- without service tax and we are paying him the same after deduction of tds .

So in Reverse charge mechanism, Service receiver is required to pay service tax of Rs.1236/- (i.e.on 100%) or Rs.494/- (i.e.on 40%) ?


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