03 December 2012
Suppose the company incurred the expenditure on any vehicle repairs. Whether the service is to be paid by service receiver under reverse charge mechanism. If yes what is the rate of service tax. Please advise .
Any repairing to vehicle shall be traeted as "works contract service" and service tax will be 12.36% of (70% of amount charged). Further, if the service provider is partnership/proprietorship firm then 50% of service tax shall be paid under reverse charge by the service receiver
CAclubindia
