Reverse charge mechanism- rent a cab service
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 September 2013
Sir,
Service receiver require to pay 100% tax under RCM clause, in respect of services provided by way of renting or hiring any motor vehicle to carry passenger(s) on abated value.
Can you pl give an example of "abated value" for better understanding?
Service receiver require to pay 100% tax under RCM clause, in respect of services provided by way of renting or hiring any motor vehicle to carry passenger(s) on abated value.
Can you pl give an example of "abated value" for better understanding?
28 September 2013
Abated value means "Tax payable on 40% of amount charged".
if value of service is Rs.100, then pay service tax on Rs.40 only.
if value of service is Rs.100, then pay service tax on Rs.40 only.
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
- TDS 194-T applicability
- Applicability of GST on Salary Reimbursement Component
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- GST ITC REVERSE
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- New GST registration for new place of business.
- FAST-DS Scheme - Foreign Assets
- Dep. as per companies act
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- 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?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
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
Quick Links
ARTICLESHIP
04 September 2026
Accounts Executive
Hema Yashwanth & Associates
Chennai
B.Com
View Details
22 September 2026
Account Assistant
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
View Details
CCI
Pro
CAclubindia
