19 October 2012
iam getting service from a tour operator regarding renting of motor vehicle for travel of my employee locally in delhi. the tour operator is not registered with service tax department.
i want to know that as iam liable to pay tax only on 40%, but if i pay 100% tax then what are the consequences.
secondly whether i can claim credit of service tax on the same or not.
19 October 2012
Assuming, you are a body corporate and receiving service from a non body corporate.
You are required to pay tax only on 40% of the invoice amount. If you pay 100% then it will be excess payment. There are no consequences as such, but you cannot take CENVAT of the 60% excess tax paid.
19 October 2012
so that means this extra payment of 60% is waste for me
secondly i want to ask that as per defination of input service " input service excludes services providede by way of renting of motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods"
is this applicable for me, if yes then how i can claim credit of tax paid.
CAclubindia
