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
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- Regarding TDS Applicability For Director Remuneration
- SFT Cash Deposit in Current Account
- FORM 26A APPLICABILITY
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
