Q. ABS comapny is hiring car on the basis od rent on cab, and cab operator claim the service tax @ 12.36.My compnay business is a hotel, and cahrge service tax @ 4.94 on cab facility provide to Guest.
Now, question is whether compnay is eligiable for taken to cenvet credit or not?
whether hotel also need to charge service tax @ 12.36 on cab facility proviode to guest for avail to cen vat credit.
Ans:-Yes if u want to claim CENVAT, No abatement under Rent a cab should be claimed, hence charge service tax @ 12.36% to guest.
CAclubindia
