Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Discussion > Service Tax >

Reverse charge on remnting of car for carry passenger

    Post New Topic
Pages : 1





Manager-Finance & Accounts

[ Scorecard : 100]
Posted On 08 August 2012 at 11:13 Report Abuse

from 1st june 2012 onward more services has been included under reverse charge . I am facing problem on renting or hiring of motor vehicle to carry passenger services . because there is two category (i) on abated value (ii) on non abated value. can you clearify the difference between two values ...

 

For example--

1-on bated value -   100% service tax payable by service recipient

2-on non abated vale   - 60% provider 40% service receiver.

 

 

 

 


Online classes for CA CS CMA



CA Unnikrishnan Nair N
Chartered Accountant

[ Scorecard : 2058]
Posted On 08 August 2012 at 11:29

Renting of motor vehicle is eligible for 60% abatement as an option. This means, if the charge is Rs.100, the value of service is Rs.40 and tax needs to be paid on this amount only.





CA Saiyum khan
Practicing CA

[ Scorecard : 675]
Posted On 08 August 2012 at 11:48

Hi Satyendra

Abated value means where the component of goods or material is not involved in the  total value of services and non abated value is where the component of goods and material is involved. The relevant para of education guide has been paid for your reference. Hope your query is resolved.

 

How is the service recipient required to calculate his tax liability under partial
reverse charge mechanism? How will the service recipient know which abatement
or valuation option has been exercised by the service provider?

The service recipient would need to discharge liability only on the payments made by him.
Thus the assessable value would be calculated on such payments done (Free of Cost material
supplied and out of pocket expenses reimbursed or incurred on behalf of the service provider
need to be included in the assessable value in terms of Valuation Rules). The invoice raised
by the service provider would normally indicate the abatement taken or method of valuation
used for arriving at the taxable value. However since the liability of the service provider and
Income Tax return Forms Ay 2012-13
131
service recipient are different and independent of each other, the service recipient can
independently avail or forgo an abatement or choose a valuation option depending upon the
ease, data available and economics.




nilesh
Indirect Tax

[ Scorecard : 82]
Posted On 09 August 2012 at 12:18

Dear Expert,

if we take car from partership firm alongwith driver for a day to travel the employee from pune to mumbai, whether reverse charge is applicable for that.

 

please help.

 




Ashish Nawandhar
Officer (Accounts)

[ Scorecard : 20]
Posted On 09 August 2012 at 16:10

Originally posted by : CA Unnikrishnan Nair N

Renting of motor vehicle is eligible for 60% abatement as an option. This means, if the charge is Rs.100, the value of service is Rs.40 and tax needs to be paid on this amount only.


Dear Sir,

 

I am a service receiver and I want to know that if service provider is claiming abatement under not. no. 13/2012 on renting of motor vehicle for carrying passangers, whether i will be allowed to take credit of service tax paid by us under reverse mechanism

 



There are 4 Replies to this message








Related Files








Related Threads


Post your reply for Reverse charge on remnting of car for carry passenger



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.




Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top