Taxi bill under reverse charge

This query is : Resolved

P.Harish (Querist)
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12 October 2012 Hello expert

Can you please solve the following query.

our is P.Ltd mfg co,
1)our marketing person hire taxi for hole day & went to client's office, Taxi owner raised Bill for Rs 2200/- no ser tax chrged. what will be our liability under rrm

2) other marketing & Acct persons went to Clients office (another city) for recovry & hire a tata sumo, Taxi owner charged Bill of Rs 2700/- + Ser Tax 133/- , Is it is correct?, What will be our liability, can we take credit- in both the cases

Please --urgently

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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13 October 2012 Both the cases you required to pay service tax @ 12.36% on 40% of the bill value under reverse charge.

Second case service provider has not charged the service tax but he has shown as per the requirement

vishwanatham gandla

vishwanatham gandla (Expert)
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18 October 2012 Law puts obligation on Service Recipients to pay ST in certain cases, as against the normal law that it is service provider who has to pay ST to govt. The present case is one such exception. Hence, as a recipient of Hiring/renting Vehicle service, you are required to Pay ST 12.36% directly to Govt Account,on 40% of the bill value, if the service provider is an individual,firm,or Huf, irrespective of the amount of bill involved, in both the cases specified by you. You are also not entitled to take CENVAT credit on this.Hope the matter is clear.

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