Renting of cab
This query is : Resolved
02 August 2014
Dear Sir,
Whether service provider is liable to pay service tax on 60%of taxable value in case of renting of vehicle.( Provider is not claiming Cenvat credit.
Example
Mr X is a Service provider whose give vehicle to a Company on rent basis for rs 10,000. The company is paying Service tax on 40% of bill amount( i.e on Rs 4,000) to govt under reverse Charge Mechanism. Whether Mr x is Liable to Pay St on Remaining 60% (i.e on 6,000) of bill amount.
Whether service provider is liable to pay service tax on 60%of taxable value in case of renting of vehicle.( Provider is not claiming Cenvat credit.
Example
Mr X is a Service provider whose give vehicle to a Company on rent basis for rs 10,000. The company is paying Service tax on 40% of bill amount( i.e on Rs 4,000) to govt under reverse Charge Mechanism. Whether Mr x is Liable to Pay St on Remaining 60% (i.e on 6,000) of bill amount.
03 August 2014
If Provider is not claiming inputs
.
.
Abatement can be taken @60%
.
.
So only 40% is taxable
.
.
So if RCM Applicable-Service receiver responsible to discharge this liability directly to govt.
.
.
If RCM Not applicable-Service provider have to charge 40% of service tax in his invoice and collect from customer and pay to govt.
.
.
Abatement can be taken @60%
.
.
So only 40% is taxable
.
.
So if RCM Applicable-Service receiver responsible to discharge this liability directly to govt.
.
.
If RCM Not applicable-Service provider have to charge 40% of service tax in his invoice and collect from customer and pay to govt.
07 August 2014
department persons are asking us to pay service tax on remaining 60% bill amt.We are not claiming cenvat credit
07 August 2014
If you are service receiver then maximum liability on rent a cab service will not exceed 40% of service tax
.
.
If service provider intends to take cenvat credit on his inputs he has to pay balance 60% tax
.
.
Refer reversecharge notification
Ask them reason for it,,
.
.
If service provider intends to take cenvat credit on his inputs he has to pay balance 60% tax
.
.
Refer reversecharge notification
Ask them reason for it,,
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