My question is to Mr Arun Kumar Sing or to anyone is that
what is abated value and non abated valye n case of renting of vehicles. as there are 2 difference tax treatment in both the cases..
My question is to Mr Arun Kumar Sing or to anyone is that
what is abated value and non abated valye n case of renting of vehicles. as there are 2 difference tax treatment in both the cases..
Dear Nilpesh,
Service provided by Individual, HUF or partnership firm whether registered or not by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business only recipient will pay service tax. In respect of Services provided or agreed to be provided by way of renting of motor vehicle designed to carry passengers on non-abated value to any person who is not engaged in the similar line of business provider will pay the service tax on the value of 60% and recipient will pay the service tax on the value of 40%.
@ Anil
govt has some data regarding the registration and exemption, and when the evasion prone activities goes belyong tollerance, then machinery takes some measures to plug in the holes,
as corporates were using the bills / vouchers of car hire, on market printed stationary, and claiming that these car owners are exempted from service tax, ( who will go to each car owner and check the same) so now onwards the corporates are in clutch to pay service tax by self,
however side by side, the genuine bonafide small car service providers are in some relief as where their cars are used by individuals , there is no such glimpse of ST right now.
Dear Arun
Thanks for your reply, however still I am not clear about what is abated value and non abated value in case of renting of vehicle
So tax liability for assessee will be
=1483
??
& please explain how in above case assessee can avail CENVAT Credit
& if Service provider is not SSI than how service provider can avail CENVAT
The second option is useful for service provider when he wants to utilize CENVAT Credit on capital goods. In both the cases liability of service recipient remains same. Hence SR is nuetral in both the cases. The main difference is for SP whether he wants to utilize CENVAT credit on capital goods or not. That is the reason and logic where in second option the government has used the words "Non Abated Value" because if assessee avails abatement he cannot utilize CENVAT credit.
| Originally posted by : Govind Inani | ||
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An assessee is a pvt ltd co. It is receiving renting of motor vehicle service from an individual who is a small service provider and not registered under service tax. Monthly bill raised by individual of Rs. 30,000/-. What will be the service tax liability on service provider as well as service receiver after 01.07.2012 in above case ? |
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