We ( Proprietary firm) are receiving the services under rent a cab and our service provider (Proprietor) is not charging service tax.
So in this case reverse charge mechanism applicable ? if yes, how much ST will applicable to us(receiver) or whether we can take input credit of this .
Service tax under reverse charge mechanism on rent a cab is applicable only if the service provider is corporate entity and service receiver is non-corporate entity, accordingly in your case it is not applicable.
CAclubindia
