Service tax payable on rent-a-cab service

Yes U have to pay............

To application of RCM, there are some conditions.

1. The service receiver should be a company and

2. The service provider should be a Individual

If the above two conditions are satisfied, then RCM will apply.

And notification clearly says "to carry passengers".

So, if above 2 conditions are satisfied and for the above mentioned purpose then RCM will apply. For other details, please find the below mentioned link.

 /articles/accounting-treatment-of-service-tax-under-reverse-charge-mechanism-15711.asp#.UgX2lvkvy4Y.gmail

Agree with above replies !

the reverese charge mechanism will be applicable only when

1. the service provider is a individual/huf/partnershipfirm/propritorship firm

2. the service recepient is a company

in your case if u are working for a company and you are receiving services from a  individual/huf/partnershipfirm/propritorship firm then your company need to pay service tax under reverse charge mechanism even if the service provider does not cross 10 lacs limit. (i.e. service provider turnover is immetrial)

Dear All,

Please note that as of now Service Tax paid on "Rent a Cab Service" is not eligible to take Cenvat Credit benefit to service receiver.

As per notifi 30/2012 the person receiving the service will have to deposit 100% ST under RCM if it is abated value and 40% in case of non-abated.

In my case tour operator has not charged ST in the invoice, now how should I decide whether to pay 100% ST or 40% ST under RCM.

IF SERVICE PROVIDER IS NOT CHARGING SERVICE TAX THEN IT MEANS ITS A CASE OF ABATED VALUE i.e, SERVICE PROVIDER IS NOT REQUIRED TO PAY SERVICE TAX & TOTAL SERVICE TAX LIABILITY OF RECEIVER WILL BE 100%*(BILL AMT*40%*12.36%).....

Originally posted by : Aman
	IF SERVICE PROVIDER IS NOT CHARGING SERVICE TAX THEN IT MEANS ITS A CASE OF ABATED VALUE i.e, SERVICE PROVIDER IS NOT REQUIRED TO PAY SERVICE TAX & TOTAL SERVICE TAX LIABILITY OF RECEIVER WILL BE 100%*(BILL AMT*40%*12.36%).....

if it is non abated value then is it Bill*12.36%?

if its non abated value then liability of service receiver will be 40% of (Bill*12.36%) & that of provider will be 60%...

but you have mentioned in case of abated value it's Bill*40%*12.36

yes i have taken 40% of bill amt because 60% is abated.....

service providers liability is 100% in case of abated value.

yes it will be 100%.....