Reverse charges mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2015 Dear All,

I have a doubt regarding Reverse Charge on Rent a Cab services. According to me there are two cases i.e. Abatement or Non abatement, Accordingly rates are different for these two cases.
i.e. Abatement - 40% of Service Tax 14%
Non Abatement - 50% of Service Tax 14% (w.e.f 01-10-2014)
So i want to that m i right or wrong for these rates as mentioned !!!!

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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05 August 2015 Yes, you are correct.......

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 August 2015 The actual rates are
if abated value then for service provider it is nil and for service reciver it is 100%

for non abated value it is 50 -50% notification number 10/2014 -st dated 1.10.2014

service tax rate is 50% in both case

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Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2015 Dear Sir,

100% means that the Liability of Service Receiver is 40% on Service Tax 14% ????

Querist : Anonymous

Querist : Anonymous (Querist)

02 September 2015 Dear Experts ,

Pls Reply...

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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03 September 2015 100% liability to service receiver does't mean entire amount chargeable to service tax.

To simplify no service tax to be payable by service provider and service receiver has to pay 100% service tax after abatement of 60%.