16 July 2012
Our company obtains the Car Hire / renting services from 3 to 4 vendors & the volume is substantial. Now in view of Notification No. 30/2012 we have following doubts- Per notification, if the vendor is providing services on abated value then do we need to pay 100% service tax & if yes, can we take the credit of the same? If the vendor is providing services on non abated value then do we need to pay 40% of service tax?, if yes can we take the credit of entire 100% service tax paid on the amount of services received? If the vendor is ready to charge entire 12.36% in their invoices, do we need to pay anything?, Can we take entire credit?
If at all we need to pay either 100% or 40% of service tax, how would we do the calculation? Do we need to sum up the invoices received & passed during the month & need to pay service tax? Do we also need to amend our service tax registration certificate?
21 July 2012
Kindly visit the aces.gov.in site and include/amend the new services in the service tax RC. For that matter, if you happened to be service provider under reverse charge mechanism, all the new services have to be incorporated in your Service Tax main RC.
For payment under reverse charge, separate challan has to be used, as correctly said by Mr Vipul Shah, and that challan is the base record for claiming cenvat credit for setting off the output tax of other services. Such service input should be "in relation to" your output services, which please note.