Service Tax on Car Hire Charges
This query is : Resolved
26 May 2008
Hi all,
A party has raised a bill towards car hire charges. He has charged Service Tax at the prescribed rate on 40% of the gross value of service provided. While other parties, providing same service are charging service tax on 100% of the gross value of service provided. I wanted to know what is the rule? Is the party charging service tax on 40% of the gross value of service provided is enjoying any abatement or he is not charging service tax on cost of fuel consumed? Please clarify.
A party has raised a bill towards car hire charges. He has charged Service Tax at the prescribed rate on 40% of the gross value of service provided. While other parties, providing same service are charging service tax on 100% of the gross value of service provided. I wanted to know what is the rule? Is the party charging service tax on 40% of the gross value of service provided is enjoying any abatement or he is not charging service tax on cost of fuel consumed? Please clarify.
26 May 2008
if a person is charging on 40% value then service provider is not entitled to cenvat credit.
Message likes :
1 times
27 May 2008
Hi Partha,
Abatement to the extent of 60% is admissible for the rent-a-cab operator providing such services, if the service provider does not avail the benefits under Cenvat Credit Scheme or the benefits under Notification No. 12/2003-S.T., dated 20-6-2003. (Notfn. No. 1/2006-S.T., dated 1-3-2006).
Rgds/
Vineet
Abatement to the extent of 60% is admissible for the rent-a-cab operator providing such services, if the service provider does not avail the benefits under Cenvat Credit Scheme or the benefits under Notification No. 12/2003-S.T., dated 20-6-2003. (Notfn. No. 1/2006-S.T., dated 1-3-2006).
Rgds/
Vineet
27 May 2008
Hi Partha,
Abatement to the extent of 60% is admissible for the rent-a-cab operator providing such services, if the service provider does not avail the benefits under Cenvat Credit Scheme or the benefits under Notification No. 12/2003-S.T., dated 20-6-2003. (Notfn. No. 1/2006-S.T., dated 1-3-2006).
Rgds/
Vineet
Abatement to the extent of 60% is admissible for the rent-a-cab operator providing such services, if the service provider does not avail the benefits under Cenvat Credit Scheme or the benefits under Notification No. 12/2003-S.T., dated 20-6-2003. (Notfn. No. 1/2006-S.T., dated 1-3-2006).
Rgds/
Vineet
27 May 2008
Hi Partha,
The effective Service tax rate shall be 4.944% (40% of 12.36%) on the gross bill.
Rgds/
Vineet
The effective Service tax rate shall be 4.944% (40% of 12.36%) on the gross bill.
Rgds/
Vineet
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- TAN for Partnership
- Relief u/s Section 89
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Loan by Partnership Firm
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
