Rent-a-cab _ abatement
This query is : Resolved
11 December 2015
Dear Sir
In a case of service Rent-a-cab, the service provider (not a body corporate) is writing a declaration on the face of the
invoice that "I have not availed any cenvat credit".
Now, for the service receiver (who is a body corporate) who has also not availed any Cenvat Credit -
1. whether the self-declaration of service provider is sufficient to calculate service tax on 40% of the value of service i.e., after 60% abatement ? ;
2. if yes, then what is the liability% of service receiver, 50% or 100%?
3. whether the service receiver always bound to rely on the declaration made by the service provider ?
4. whether on the part of service receiver is there any violation of impugned laws like service tax rules or cenvat credit rules etc, in case the service receiver does not rely on the declaration made as such by the service provider?
Kindly provide your valuable inputs on the above issues.
B.K. Harichandan
In a case of service Rent-a-cab, the service provider (not a body corporate) is writing a declaration on the face of the
invoice that "I have not availed any cenvat credit".
Now, for the service receiver (who is a body corporate) who has also not availed any Cenvat Credit -
1. whether the self-declaration of service provider is sufficient to calculate service tax on 40% of the value of service i.e., after 60% abatement ? ;
2. if yes, then what is the liability% of service receiver, 50% or 100%?
3. whether the service receiver always bound to rely on the declaration made by the service provider ?
4. whether on the part of service receiver is there any violation of impugned laws like service tax rules or cenvat credit rules etc, in case the service receiver does not rely on the declaration made as such by the service provider?
Kindly provide your valuable inputs on the above issues.
B.K. Harichandan
CA R SEETHARAMAN
(Expert)
11 December 2015
1 Yes.
2 It is 100%.
3 Yes.
4 Non payment of service tax based on declaration liable for interest and penalty.
2 It is 100%.
3 Yes.
4 Non payment of service tax based on declaration liable for interest and penalty.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- Working on Gold wastage during Melting of old gold jewellery
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Import Order Cancelled.
- GSTR-9C filing
- GST ITC as per notification 12/2023- central tax
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
