Mukesh Sharma (B.Com) (42 Points)
08 August 2016
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(193950 Points)
Replied 08 August 2016
Deduct your percentage out of the service tax payable under RCM, and pay the rest amount
Mukesh Sharma
(B.Com)
(42 Points)
Replied 08 August 2016
in case the service provider charged full service tax, in that case do we need to chagre?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(193950 Points)
Replied 08 August 2016
Yes, it is Service receiver's liability to pay service tax under RCM, upto the percentage prescribed.
Mukesh Sharma
(B.Com)
(42 Points)
Replied 08 August 2016
Thank you, So i understand if i have a invoice from Rent A Cab inclusive of service Tax (15%) so i will pay 7.5% and rest will be paid by service provider.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(193950 Points)
Replied 08 August 2016
Only in respect of services provided or agreed to be provided by way of renting of a motor vehicle/Rent A Cab, designed to carry passengers on non abated value to any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate.
Mukesh Sharma
(B.Com)
(42 Points)
Replied 08 August 2016
And what if the service provider is taking abatement. in some cases i am receiving the invoices with abated value?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(193950 Points)
Replied 08 August 2016
In respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated valueto any person who is not engaged in the similar line of business by individual, HUF, firm or AOP to Body Corporate, 100% under RCM over service receiver.
Here 100% means abated value. which is 40%, of the service tax rate.
i.e. if the value of service is abated then the liability of service recipient under reverse charge would be only 40% and the liability of provider of service to pay service tax is NIL.
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