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Reverse charge under rent a cab service

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This query is : Resolved

pravin kumar karn (Querist)
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04 June 2013 Service provider raised bill for carrying of passenger on cab (Covered under Rent a Cab Service)and have not charged service tax on Bill. For example Invoice value is 10,000
Service Tax Nil
Total Invoice Value 10,000

Q1 Whether invoice value is abated value or Non abated value
Q2 Whether Service receiver require to pay full amount of service Tax on Invoice value or 40% of Invoice value

Status of Service Provider- Individual/Firm
Status of Service receiver- Company

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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05 June 2013 Hi,
Ans 1) It is abated value
Ans 2) Service receiver has to pay Service tax on full invoice value(i.e on 100%)
In your case Reverse charge is applicable

for more details visit:
https://www.caclubindia.com/articles/reverse-charge-methodology-under-service-tax-16364.asp

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