Manas
(GST Compliance)
(65 Points)
Replied 13 January 2017
5.6%
As per Notification No. 26/2012-ST , abatement of 60% is available on Rent-A-Cab Service i.e. service of renting of any motor vehicle designed to carry passengers. It means service tax is payable on only 40% of the value of Rent-A-Cab service. The abatement is subject to the condition that the Cenvat Credit of inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of Cenvat Credit Rules, 2004. If the service provider avail cenvat credit on any input, capital good or input service, used for providing rent a cab service, then abatement is not available.
Nagendra Hegde
(Chartered Accountant)
(1948 Points)
Replied 13 January 2017
To add on,
If the service is provided to business entity being body corporate, then such body corporate would pay ST under RCM (Ref Sec 68(2) read with 30/2012-ST
denny
(Finance manager)
(25 Points)
Replied 14 April 2017
CAclubindia
