29 November 2012
As per the details of Reverse Charge mechanism, When the service provider avails benefit of abatement provided under notification 26/2012 - ST (Supra) i.e. calculate tax @ 4.944% (12.36 * 40%) then 100% liability of payment of service tax lies on the service Provider.
In case of my client who is a service receiver from a Rent a cab operator, the service provider avails benefit of abatement and and raised a bill for rs. 1000/-. Now, tell me how much amount is payable towards service tax by my my client.
CAclubindia
