Rent on cab

This query is : Open

atul kumar goel (Querist)
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11 August 2012 sir, a proprietor ship concern registered under rent on cab service was charging service tax after availing abatment of 60% on bills raised to companies and individuals till 30.06.2012. From 01.07.2012 , wheather service tax will be paid by service receiver (company and/or individual) or by service provider as earlier.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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12 August 2012 The Service Provider can avail the abatement of 60% after 01/07/2012 also.
In that case, the service provider will have to pay 40% of service tax under reverse charge and nothing will be paid by the service provider.
Or
On the other hand, If Service provider does not wish to avail the abatement then he will have to pay 60% of service tax and remaining 40% shall be paid by the service receiver under reverse charge.

atul kumar goel

atul kumar goel (Querist)
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12 August 2012 Thanks Amit sir, i think that there was some clerkial mistake in your reply. i think that you want to say that if service provider take abatement then service receiver has to pay service tax on 40% and no tax will be paid by provider. Further , i want to know that lf services are being provided to individuals rather say numbers of small individuals, then also service provider is not liable to pay taxes.

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