Service tax matter

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012 Dear Sir,

We Received a bill from a vendor who provide us service for Cab hire for monthly basis. on the same what service tax he should charge and what should be the reversal treatment.

pls. expplain.

thanks and regard

RENGARAJ R.K

RENGARAJ R.K (Expert)
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09 August 2012 Ref: Notification No.30/2012 dt 20.06.12.

Please go thro this for your query.

(a) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business

SERVICE PROVIDER - NIL
SERVICE RECEIVER - 100%

(b) in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry Passengers on non abated value to any person who is not engaged in the similar line of business.

SERVICE PROVIDER- 60%
SERVICE RECEIVER- 40%

Amol S Joglekar

Amol S Joglekar (Expert)
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09 August 2012 If he/she is charging full amount of service tax, then reverse charge mechanism need not be implemented. 60% service provider 40% service receiver. notification 30

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Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2012
Sir I am not cleared what who is under abated and who is under not abated

Amol S Joglekar

Amol S Joglekar (Expert)
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09 August 2012 If service tax is fully charged by the vendor, no need to go for reverse charge. If vendor has not charged, 40% of the service tax liability is on service receiver.