05 May 2014
In respect of service ‘Renting of any motor vehicle’ 60% abatement is available and net tax payable on 40% of value. This is subject to the condition that input, input services and capital goods , used for providing the taxable services has not been taken under the provision of CENVAT Credit Rules ,2004 by the service provider. Liability to pay service tax Hiring of motor vehicle designed to carry passenger a] with abatement Service recipient 100% Service provider nil b] without abatement Service recipient 40% Service provider 60%
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