My partnership firm avail service under rent a Cab scheme.I am dealer of goods only. We know that Rent a Cab scheme is eligible for 60% abatement. Also, as per partial reverse charge mechanism, my liability as service provider is only to the extent of 40% with abatement. Since i can not utilise service tax paid as cenvat, does this mean that Service tax is to be paid by me as "Value of Service * 40% * 40% ? For eg. for payment of 1000 rs, my service tax is 12.36% of Rs. 160 ?
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