Service tax on rent a cab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2012 If we are a pvt ltd comany & hiring cab on rent.
In this case as per reverse charge method who will pay service tax???

Service receiver & service provider??
if both will pay service tax then please confirm how much % both will pay???

CA Manish

CA Manish (Expert)
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22 October 2012 60% by provider and 40% by Receiver.

If provider is

i) any individual
ii) HUF
iii) Proprietary firm
iv) partnership firm
v) Association of Persons

and Receiver is

i)Any company registered under the Companies Act
ii)business entity registered as body corporate

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Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2012 Thanks sir.

@VaibhavJ

@VaibhavJ (Expert)
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22 October 2012 Hi,

If service provider is either Individual/HUF/Proprietor/Partnership both of you have to pay Service Tax.

60% by Service Provider & 40% by the person receiving the service.

However 100% of Service Tax to be paid if ST charge d on abated rate.

Pl refer..

http://www.simpletaxindia.net/2012/06/new-services-under-reverse-charge-in.html

Rgds//Vaibhav
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