Service tax to be charged on rent a cab

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. 

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

yes , agree.

sir my cllient is a partner ship firm providing rent a cab service. The firm is availing abatement at 60 percent and paying service tax. But one of it client is a company and the told they will pay(service receiver) will pay the service tax. so the firm did not charge service tax and raised the bill. Now how to file service tax return. client filed return and shown exemption as per motification no 030/2012_St Sl.no 7a. But after filing the return error message V2SSRC10 Exemption notification no 030/2012ST and serial 7a is not aplicable to the service rent a cab scheme operated service and or for the return period.
Pls help in filing return properly.
Denny Jose