19 November 2013
My company is a pvt ltd. co. running t.v. channel. We have to hire taxis for movment of our employees. The service provider gives us bill charging 40% s.t. My question is
1. can the service tax charged by the sp be claimed as input credit ?
2. what is our liability under reverse charge mechanisim. Do we have to pay remaing 60% tax.
3. If yes, then can we claim this 60% also as input credit.
19 November 2013
Find point by point answer to your query
1) Service Tax charged by Rent A Cab Operator can not be claimed as CENVAT
2) In case of rent a cab service tax is applicable only on 40% value, hence you are not required to pay any additional tax.
However here you need to keep in mind that if the operator is other than corporate entity then your are liable to pay this tax @ 40% on the value of service.
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