Reverse charge mechanism on rent a cab sevice

Rameswara Babu V (M.Com) (24 Points)

16 June 2015  

Hi,

I have a query in RCM - Rent a cab service.

A vendor has taken abatement of 60% under Rent a cab service. while billing he charged service tax @ 4.944% along with hire charges. ( Bill date 1/5/15. Pyment was also made earlier )

 

My question was whether we need to pay the Service tax amount directly to government under RCM or we need to pay the ST to vendor as he charged the same in his bill.

 

Please explain. Thanks in advance

 

Rameswara Babu