08 August 2012
In my opinion, this applies only to service tax RC holder. That is X is RC holder but his taxable service turnover is less than 10 lacs not paying any tax. When X avails service of rent-a-cab, here he has to pay the tax under reverse charge (his partial or full percentage) even if he has not crossed 10 lacs.
He can also take credit of the amount paid under reverse charge, if such services are in relation to his business activities.
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