Abatement on service of renting of motor vehicles

(iii) Partial Reverse Charge Mechanism.

services  provided or agreed to be provided  by way of renting or hiring                          Service Provider - NIL

any motor vehicle designed to carry passenger (With abatement)                               Service Receiver - 100%

in respect of  services  provided or agreed to be provided  by way of renting or hiring                               Service Provider - 50%

any motor vehicle designed to carry passenger on non abated value. (Without Abatement)                    Service Receiver - 50%

Regards

Piyush Tanwar

Mobile - 9717468521

Email - capiyushtanwar91 @ gmail.com

Thanks piyush.

but here the company is taking this service from unregistered service provider. so my quary is:

should the company pay tax on  40% of total amount of sevice under full RCM,availing abatement

or

only 50% of tax amount to govt. and another 50% will not be paid to the vendor as it is unregistered.

pls.

If company availing abatement benefit then company must have to pay tax on 40% of the total amount under RCM.

Company only pays tax on 40% of the total amount to the govt as it is unregistered vendor.

thank u.

my question is Can company avail this abatement and pay only 40% instead of 50%?

yes company can avail this abatement