Service tax rent a cab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2016 We are registered limited co.and we are using service of rent A cab. service provider is individual and does not have taxable service of more than 10 Lakh. hence, he is not register in service tax department. I would like to asked whether we need to pay full tax or 50% on RCM or no need to pay tax. As service provider does have liability to pay the tax.

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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30 August 2016 As per the service tax reverse charge provision if service provider is Individual, HUF or Firm and has not charged service tax in his invoice, the service receiver is liable to pay service tax only on 40% value.
Here 100% reverse charge applicable with 60% abatement hence you have to pay S.tax on 40% of the Value of Taxable service @ 14%+0.5% SBC+0.5% KCC
Thanks.