In the Notification 15/2012
regrading reverse charge- in clause 7 - renting of vehicle- two option are there
1> 100% ST to be paid by Service receiver (Abated value)
2> 40 % ST to be paid by Service receiver (Non abated value)
What is the meaning of abated value? How it is calculated?
please advise.
Dear Anil,
Please refer Not.26/2012 ST dtd.20-June-2012 for new Abatements in Service Tax wef:01-July-2012.
at the above table at Sl.no.9 "Renting of any motor Vehicle designed to carry passengers" after abtement yoy have to calculate tax @ 40% on gross value.
EXbill is for 20K, receiver opt for abatemented value is 8k tax is 100% @ 12.36% so tax is 989 only.
if non abtement means total tax is 2472, hence receiver part is only 40% @ 989/-.
I think your issue resolved.
CAclubindia
