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Service tax in case tour operator and renting of passenger
Fact - The Service Provider is an proprietorship concern registered with service tax department for providing tour operator services on which 70% abatement is available to the service provider thus only 30% of 15% i.e 4.5% Service tax is payable on the value of services provided.
Issue- In the case of above mentioned service provider , the service receiver is an private limited company which is considering the service provided to him as renting of motor vehicle and thereby paying the compete service tax itself on reverse charge mechanism basis after taking the abatement of 60%i.e @ 6% and due to such arrangement the service provider is also not filing the service tax return as he is not paying the service tax.
Conflict - In this given case what penalties are attracted to the service provider for non-filing of service tax return and whether the payment of service tax by the service receiver hereby will be considered as an default ?
Replies (2)
Hi Kapil,
The CBEC inposes penalty for short payment or short charging of service tax. In your case please specify whether the bill issued does mention the amount of service tax. As how can the receiver recalculate the service tax payable which is already mentioned by the provider in the bill.
| Originally posted by : kapil dev choudhary | ||
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Fact - The Service Provider is an proprietorship concern registered with service tax department for providing tour operator services on which 70% abatement is available to the service provider thus only 30% of 15% i.e 4.5% Service tax is payable on the value of services provided. Issue- In the case of above mentioned service provider , the service receiver is an private limited company which is considering the service provided to him as renting of motor vehicle and thereby paying the compete service tax itself on reverse charge mechanism basis after taking the abatement of 60%i.e @ 6% and due to such arrangement the service provider is also not filing the service tax return as he is not paying the service tax. Conflict - In this given case what penalties are attracted to the service provider for non-filing of service tax return and whether the payment of service tax by the service receiver hereby will be considered as an default ? |
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attach a copy of invoice raised by service provider and registeration certificate. for better resolution of query
Regards
Karanjit Singh | +91-7503588224
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