Hi, I have a doubt on Service tax. Recently I saw a my friend's payslip slip, service tax recovery on Cab and Lunch services. The company arranging the transport for pick up and drop employees, and providing the lunch. Small amount is recovered from every month, the remainning amount is paid by the company.
1. The service tax rate is 4.944% (after abatement).
2. The service provider charging the service to Service receiver (company), the company transferred is liablity to employees is it correct?
3. I think it is reverse charge mechanism, here employee is responsible to pay service tax
CAclubindia
