Service tax in vehicle hire (car travels) urgent
This query is : Resolved
15 October 2012
Monthly vehicle (Car) hire charges bill we have received in that the vendor(V.k Tour & Travels) service tax 2.98% has been charged,
Please let us know how much % to be charges for Service tax in hire charges for Car travels
please brief,
Please let us know how much % to be charges for Service tax in hire charges for Car travels
please brief,
15 October 2012
In case of car hire charges service tax shall be borne by service receiver (corporate)full or part depending on the service provider.
If he(service provider) charges the service tax on 60% the bill with out claiming abatement then - Service receiver has to pay on remaining 40% under reverse charge.
If he raises the bill with out claiming the service tax ( note that charging and showing is different- under reverse charge service provider has to show the service tax amount that is paid by the service receiver on the bill or Invoice ) then - service receiver has to pay service tax on 40% of the bill value.
If he(service provider) charges the service tax on 60% the bill with out claiming abatement then - Service receiver has to pay on remaining 40% under reverse charge.
If he raises the bill with out claiming the service tax ( note that charging and showing is different- under reverse charge service provider has to show the service tax amount that is paid by the service receiver on the bill or Invoice ) then - service receiver has to pay service tax on 40% of the bill value.
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