Service Tax Query .. Pls. Reply .. Urgent!!!!!

Dear Friends,

A Pvt.co is engaging Vans on rent for its employees pick & drop. The van service providers are not charging any service tax on the bills hence the Turnover of them is less than the limit. My question is the co. has to remit service tax ??? as like in carriage transportation remittence of service tax on 25% of the sevice value.

Please clarify .. Urgent...

Thanks in advance.

Best Regards,

Kannan

 

Replies (8)

Not applicable on motor transport,  goods transport and public transport is diff

Thank You , Sharma Ji

 

In normal course the service provider is suuposed to  charge , collect and pay the servic etax to  revneu. Only in some specified catgeories like GTA there is a reverse charge which is applicable. In your case there is no such provision, therefore not liability on you.

Thank you

 

Kannan

hi

Is it compulsory to file service tax return online.

Dear Iyappankannan

 

 

 It seems that service is covered under Rent A Cab service

If your service provider is not charging Tax as turnover is less than 10 Lacs. You have to take undertaking from Service provider that his turnover is less than 10 Lacs

Above is necessary as Excise & Service tax authority can ask the payment details etc and blame for tax evasion

Dear Vivek

Thanks for your comment , will get the undertaking letter from them to comply.

Kannan

No, Company shall not be liable to pay Service Tax as Service Provider does not fall under category of Taxable Assess. Yes for safe side, company may take declaration from Service provider that their annual income is under limit of Service tax exemption.

Further, If Service  Provider shall levy Service Tax then Credit of the same shall be allowed to company. So many recent judgemnet of CESTAT shall support the same.

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