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Service tax under rcm on cab hiring

This query is : Resolved 

15 March 2014 Dear All, I want to ask that in under RCM method on CAB hiring service receiver needs to pay tax by two method one is 40% of total liability if provider is not claiming abatement and 100% of total liability if service provider is claiming abatement. Now the issue is if provider is not charging any thing on invoice or if he his unregistered cab provider in that case how much receiver needs to.pay whether full 12.36% or 4.94%. Please justified with full clarification don't copy paste the notification.

18 March 2014 1. The abatement is available to BOTH the service provider as well as the service recipient.

2. If the service provider has NOT charged service tax in his invoice, the service recipient can avail abatement and pay service tax on 40% of the invoice amount.


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