Dear All,
Service tax (RCM) rent a cab
My company is service receiver & Rent a cab is Service provider, Service provider is also Company. Service provider pays 60% service tax under abetment to government & my company pays 40% service tax to service provider.
My question is can we (service receiver) also pays 60% service tax to government or not?
it is a type of question that ur income tax liability is 1000 rs can u pay 2000
sorry dear but i didnt understand why u wanna pay much...???
Reverse charge will be applicable in this case only when service provider is Individual, HUF, Proprietary Firm, Partnership Firm.
Since service provider is company here therefore no RCM will be applicable here.
Dear All,
But service provider is charging 40% service tax to service receiver. & service provider paying 60% service tax to gov. Service provider is saying it is abatment.
But its not your problem. Your company is service reciever & you will avail credit only for that amount what is indicated in the invoice & you have paid. I dont know why are u concerned about SP if he is paying extra tax from his own pocket.
Thanks sir
Agree with Mr. Gagan. When the service provider is a company, then reverse charge is not applicable and any liabilty (if taking abatement of 60%, ST liabiltiy 4.944%, if not taking abatement, ST liability 12.36%) to pay servie tax is upon service provider u/s 68(1).
As service receiver, you ensure that he doesn't charge other then 4.944% or 12.36% and pay him accordingly. You are not eligible to take cenvat credit.
CAclubindia
