Please guide me on Service Tax applicable under reverse charge mechanism for renting a car for director/employees of company, I have recd. a bill from Proprietary concern with out charging service tax p. tell me that in this case our company have to pay service tax or not?? if yes then @ what %, what is abatement %
28 November 2013
if bill is in the name of director/employees no reversecharge applicable . . if bill is in the name of comapany reversecharge applicable . . Tax on 40% of value by service receiver and Nil by service provider. If the service provider intends to avail Cenvat credit, he can pay service tax on balance 60%. Thus, service receiver is liable to pay service tax only on 40% value.
28 November 2013
Thanks a lot ganesh ji....can u able to provide me any specific notification or circular on the same as I have to convince my seniors.....
CAclubindia
