16 January 2013
We are a Pvt Ltd. Comany. we are hiring motor vehicle to carry our workers from city to our factory. Motor vehicle contractor is a proprietary concern and he charged service tax on 40% value (i.e.4.94%). So My query is what is our tax liability in above mentioned condition in partial reverse charge. Kindly inform percentage of tax to be paid by our end.
16 January 2013
In this case there is no other liability for you than the 4.94% charged by the contractor., since under reverse charge you will be liable to pay only when the contractor is not charging in the invoice., but as he is collecting ., you will not get any reverse charge in the above situation
CAclubindia
