Service tax on cab

Dear Mr Antony 

Please note that there is a amendment in Service Tax from July 2012 and reverse charge mechanism applies.In reverse charge the reverse charge you have to pay tax on the service received by you. There is no exemption limit available to the receiver. But abatement is available for rent a cab services.

In your case the service tax is payable by you only. No matter if the cab service is a registered or not. That is not your botheration.

Now service tax is payable as follows

Example

Service received by you              RS 1000.00

Service tax payable is on 40%  RS   400.00

service tax to be paid by you      RS     49.44 

( Jayam Ramesh K C) 

Dear Mr Antony 

This is not GTA in this this case.

( Jayam Ramesh K C) 

This is of course not GTA.If you are a bussiness entity registered as body corporate you are liable to pay ST under reverse charge mechanism.However your liability will be 100% if bill is raised on abated value and it will be 40% if the bill is raised on non abated value.