Service tax on reverse charge

Ms Aishwarya., 

please metion the case details like:

-nature of service

-Constitution of both service provider and service receiver...

the question is incomplete

/articles/reverse-charge-mechanism-in-service-tax-an-overview-15865.asp#.UL2cnIPFWDs

U can get more information from the above article

Thanx friend!

Service provider : Individual

Service receiver : Company

Nature of Service: Car Hire charges

The individual's turnover does not exceed the taxable value of 10 lakhs and in the invoice too service tax amount is not given.

Please clarify. Is the company liable to pay 40% of the invoice amount under reverse charge?

The Company(service receiver) has to pay service tax on 40% of the Invoice bill., if he want to take cenvat credit , the company can pay on 100%

Is the company not eligible for credit, if it pays only 40% of the invoice amount?

Dear Aishwarya,

As per CCR 2004, there is no provision for taking Cenvat Credit to Service Receiver, when he pays ST on 40% Value of Renting of Motor Vehicle Service.

As per Cenvar credit rules., the Cenvat credit cannot be claimes when the tax has been collected under composite schemes...