Service tax liability on service receiver

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This query is : Resolved

CMA Swati Agarwal (Querist)

30 August 2013 Dear Sir,

We are receiving the services of vehicle hiring.
The invoice value for the same is say, Rs. 100
As a service receiver what is the amount of service tax we are liable to pay. Please also provide the respective notification no. and Sl. no. under which it will be covered.

Thanks

Swati

CA Abhi Pandey

CA Abhi Pandey (Expert)

30 August 2013 Relevent Notification no. is 026/2012-ST for Abatement and also refer notification no. 30/2012-ST for 60-40 ratio for Service provider and Service receiver respectively.

If service provider has availed abatement then;
Rs. 100*40%*12.36%= Rs. 4.94

CMA Swati Agarwal

CMA Swati Agarwal (Querist)

30 August 2013 Thanks Sir,

If we are not aware that whether the service provider has availed abatement or not, then as a service receiver what is the service tax liability in said example

CA Abhi Pandey

CA Abhi Pandey (Expert)

30 August 2013 You will have to check the bill whether they have charged service tax or not.

If not, then it is abated value.

If they have charged and not shown the abatement then apply the abatement procedure.

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