Reverse charge on rent a cab
This query is : Resolved
16 January 2014
Hi, seniors..
during vouching of journal voucher of co. i come to know that, in one of a bill of taxi co. bill is in the name of employee and co. has reimbursed him this charges and co. said as bill is in the name of employee reverse charge is not applicable. do contention of co. is right?
whether credit of this reverse charge will be admissible... thank you...
during vouching of journal voucher of co. i come to know that, in one of a bill of taxi co. bill is in the name of employee and co. has reimbursed him this charges and co. said as bill is in the name of employee reverse charge is not applicable. do contention of co. is right?
whether credit of this reverse charge will be admissible... thank you...
Ganeshbabu K
(Expert)
16 January 2014
Yes company contention on reversecharge applicability is correct as per provisions
.
.
Though company is reimbursing the Bill, the service receiver is the employee, if the Bill of the service provider is in name of employee
[In fact, the motor vehicle operator is not likely to know that the service receiver is company and will have to charge service tax in normal course, if he is otherwise liable].
In such cases, the company will not be liable under reverse charge. However, if the bill is in name of the company, reverse charge will apply, if the service provider is individual, HUF etc.
.
.
Cenvat credit not available to company
.
.
Though company is reimbursing the Bill, the service receiver is the employee, if the Bill of the service provider is in name of employee
[In fact, the motor vehicle operator is not likely to know that the service receiver is company and will have to charge service tax in normal course, if he is otherwise liable].
In such cases, the company will not be liable under reverse charge. However, if the bill is in name of the company, reverse charge will apply, if the service provider is individual, HUF etc.
.
.
Cenvat credit not available to company
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