Reverse charge mechanism on govt organization

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2012 i have doubt regarding service tax. As per notification no. 30/2012-Service tax dated 20th June 2012, various services are now tax shared. We in our govt. organization are recipient of two services : 1. Manpower. 2.Vehicle for carrying passenger. Till now the provider was charging us the bill with service tax of 12.36%, but as of this notification the service tax is shared in specific proportion. My first doubt is how shall we pay the service tax : either by just paying specific share of ours in bill to provider or do we need to have our own service tax number and pay it separetly. second, diffrence between "carrying passenger on abated value" and "carrying passenger on non-abated value". We are govt org which are hireing services from private travel operators on specific rates decided o the basis of open tender.

Read more at: https://www.caclubindia.com/forum/service-tax-for-recepient-224808.asp#.UIjs6G_MgyM

MOHAMMAD SALIM

MOHAMMAD SALIM (Expert)
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25 October 2012 You being Govt. Orgn and not govt. u need to take ST registration. Abatement of 40% is provided on renting of motor vehicle. Accordingly non-abated value is without considering this and abated value means after this i.e. 60%.

Hope this would settle the issue...

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