Rcm for rent a cab service

This query is : Resolved

ravi (Querist)
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31 December 2015
SIR,
We have taken hiring vehicle service via tender. Service provider (individual) has ST Code and turn over>10 lac. He has issued an invoice (Claiming 50% ST liability on his part) as under:-

Base Amt = 18000
ST 7% = 1260
SBC.25% = 45
________________
Total Rs. = 19305/-

Now do we need to pay 50% Service Tax to ST Authority after payment of this bill ?
How much ST, the service provider will have to pay ?

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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01 January 2016 If you are a body corporate registered as business entity then you have to pay 50% service tax to ST authority and service provider will pay the same amount to st authority

ravi

ravi (Querist)
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01 January 2016 WE ARE PSU.
DO WE NEED TO GET ANY DECLARATION/ASSURANCE FROM THE SERVICE PROVIDER FOR ST PAYMENT ON HIS PART ?

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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02 January 2016 NO you dont need such declaration as you can avail cenvat credit of st payment to service provider if you made the payment of his services within3 months

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