Reverse charge for rent a cab
This query is : Resolved
25 April 2014
My Client is a private limited company providing Rent a cab services to corporates and individuals.
Whether the 100% reverse charge applicable to them. Currently they are paying service tax at 40% abated value.
on reading the reverse charge mechanisim, i see that reverse charge is applicable only when one individual/PF/AOP raises an invoice on company.
However a similar private limited company operating in Pune is not charging service tax.
Getting confused. Please clarify urgently.
please give me the reference notification also please
Whether the 100% reverse charge applicable to them. Currently they are paying service tax at 40% abated value.
on reading the reverse charge mechanisim, i see that reverse charge is applicable only when one individual/PF/AOP raises an invoice on company.
However a similar private limited company operating in Pune is not charging service tax.
Getting confused. Please clarify urgently.
please give me the reference notification also please
26 April 2014
TWO CHOICE IN RCM IN CAB SERVICE
1 PROVIDER + RECEIVER PAYABLE AS PER 30/2012-ST 60 +40
2 ONLY RECEIVER PAID AS PER 26/2012-ST 60% ABATEMENT VALUE.
CHOICE IS COMPANY MOST OF COMPANY PAID ONLY AND AVOID FOR ADDITIONAL BURDEN OF S TAX.
SO SERVICE PROVIDER NOT TAKE REGISTRATION
1 PROVIDER + RECEIVER PAYABLE AS PER 30/2012-ST 60 +40
2 ONLY RECEIVER PAID AS PER 26/2012-ST 60% ABATEMENT VALUE.
CHOICE IS COMPANY MOST OF COMPANY PAID ONLY AND AVOID FOR ADDITIONAL BURDEN OF S TAX.
SO SERVICE PROVIDER NOT TAKE REGISTRATION
26 April 2014
That means Company need not charge service tax in their invoice, where it is as per Notification 26/2012
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