Rverse charge mechanism/ partial reverse charge

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2012 If any Pvt. Ltd. Comapny Receives Bill From Service Provider as Renting of Motor Vehicle in following manner

Bill Amount:- 5000/-
Service Tax on
Abated Value (4.94%) 247/-

..........
Total 5247/-

So My Question is what is Tax Liability of Pvt. Ltd. Comapny as a service receiver under reverse charge mechanism or Partial reverse charge mechanism.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

02 October 2012 Total service tax of 247 shall be borne by service receiver (body corporate) in case of abated value.

CA Suresh Jain

CA Suresh Jain (Expert)

02 October 2012 12.36% of abated value is to be borne by service receiver in addition to the service tax charged by service provider

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)

02 October 2012 Since invoice is raised on abated value, full revercharge shall apply...Service receiver is liable to pay Rs. 247 to Govt. No further liability.

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