Service tax on car hire charges

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sarwar shabbir shaikh (Querist)

17 May 2013 Dear Plz suggest,

our company is hiring car on rent in which service provider charge 4.99% service tax so in this case how much service tax should i charge.
if i charge again 4.99% so remaining service tax who will be paying or i booked remaining all service tax amount.

Please suggest

CA Vikas Acharya

CA Vikas Acharya (Expert)

19 May 2013 after abatement he should charge..
4.944% of the service value.

now if the provider is individual, partnership firm, llp, AOP.
and if the receiver is body corporate.

then in that case receiver will pay 40% of TAX AMOUNT i.e, 1.9776% of the value..
and the provider is will pay 60% of the TAX AMOUNT i.e, 2.9664% of value..

Message likes : 1 times

sarwar shabbir shaikh

sarwar shabbir shaikh (Querist)

20 May 2013 Thanks for your suggestion.

i have another query i.e.

Bill Amt Rs. 1000/-
Misc Exp Rs. 450/-
Total Amt 1450/-

In this case service provider charges service tax on bill amt i.e. 1000/- (1000*12.36% of 60% =49.44/-). So total bill would be Rs,1499.44/-.

My query is if he is charging service tax on bill amt so why we calculate service tax on 1499.44/- amt is it right calculation or we have to calculate on bill amt.
Plz suggest

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