Under reverse charge abated and non abated value

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Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2012 Can you please tell me what is meaning of abated value & non abated value in respect of service provided by way of renting of motor vehicle .

kindly reply at the earliest

CA. Jatin Gupta

CA. Jatin Gupta (Expert)
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06 October 2012 abated value- where abatement is taken by service provider @60% on total value of service provided (but he is not entitled to take cenvat credit on inputs). Only service receiver pays service tax at 40% i.e 4.994% (12.36% * 40%).
non-abated value- where abatement is not taken by service provider, he is entitled to take cenvat credit on inputs, so service provider is required to pay 7.416% (12.36% of 60%). Balance 40% is paid by service receiver.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 October 2012 Thanks Jatin Sir, Kindly explan the following case

Ram travels billied Rs 12000/- no ser tax charged in Bill.
Ram travels billed Rs 12000/- + Ser tax what % he has to charge in the bill & after all what will be the libility of service receiver (who is P Ltd, co.)