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.
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