We are a Pvt. Ltd Co. Availing Rent a-Car Service and Contract carriage services from different service provider.
Please let me know our Tax liability on RCMC for the following cases.
1 Service Provider not charged any amount as Service Tax in their Bill -
2 Service provider chargging Service tax in Invoice @ 5.80%.
Thanks
Nilay Barat
1. If the Service provider does not charge service tax, then you will have to make payment of service tax under reverse charge at 14.5% on 40% of the value after taking abatement. (100% liability on Service receiver)
2. Ask the Service provider to charge at the rate of 7.25% or not to charge anything. As the Partial reverse charge has been changed and you will have to pay the balance 7.25% under reverse charge.
CAclubindia
