Service tax on rent on cab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2015 Dear Expert,
Please let me know .A cab provider provide a cab service to my Client(prop.)The cab provider is taking abatement,If cab provider charge bill of Rs 1200 then How service tax to be paid by my Client ?

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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21 August 2015 Service tax = Rs. 1200*40%*14% = Rs.67.2

As per Sr. No. 9 of Notification No. 26/2012-ST dated 20-06-2012, abatement of 60% is available on Rent-A-Cab Service i.e. service of renting of any motor vehicle designed to carry passengers. It means service tax is payable on only 40% of the value of Rent-A-Cab service. The abatement is subject to the condition that the Cenvat Credit of inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of Cenvat Credit Rules, 2004. If the service provider avail cenvat credit on any input, capital good or input service, used for providing rent a cab service, then abatement is not available.

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