Dear All Learned CA /CMA / CS
My client is providing vehicles to body corporate ( Ltd. Company ) for transporting of their employees from fixed pick up point to the factory and from factory to their pick up point. Client is having the service tax registration as a Tour Operator services and not taking any cenvat credit for provision of services . The Service receiver ( Ltd Company ) asked the client not to charge the service tax in bill and they will pay the service tax under reverse charge basis under notification no. 30/2012 Sr No. 7(a ) .effective rate 4.944%
But our real problem start here , when we file the service tax return of our client ( service provider ) in column A10.1 Service provider u/s 68(1) Yes A10.3 Service provider under partial reverse charge No . Because Ltd. Company is paying the service tax , but we have to show the amount received from Ltd. Company in column B1.3 ( previous year GTO is below Rs.50 Lakhs ) we are showing the exemption amount it column in B1.9 .and taxable value B1.15 is NIL because ultimately the tax liability of our client is ZERO .
But after return is filed the message on the face of returned filed pdf is as Exemption Notification No.{ 030/2012-S.T. } and Serial No.{ 7(a) } is not applicable to the Service { Tour operator services } and/or for the return period.
Now what to do in this case by which this error will go ? please advice
Thanks
A M SHEMBEKAR
CAclubindia
