Abatement in servie tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

05 September 2012 I provide service of car renting and hiring for this i registered with service tax In july month. when i raised the invoice service recipient said to me charging 40% of 12.36% and said he will pay the service tax to the dept. and the amount kept with him.my question is whether i have to pay the 60% amount or i can claim 100% abatement. Since service recipient is paying service tax so i dont have to pay because i have not collected the tax.
Pls reply soon.
And give all the possibilities .
Thanks In Advance

CA Suresh Jain

CA Suresh Jain (Expert)
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05 September 2012 As per notification 26/2012-st dated 20.6.2012 the service provider can choose to pay service tax @12.36% on 40% of the vvalue of the service rendered provided that the service provider has not availed CENVAT.

Notification 30/2012 in your case service receiver has to pay 12.36% service tax on abated value of service i.e. 60% of the amount billed by you.

But, where no abatement is claimed service provider is required to pay service tax on 60% of the vvalue of service and the receiver is required to pay serrvice tax on 40% of the value. but, in this case the service provider can claim CENVAT

For further clarification please mail the query at sureshjain.nj@gmail.com chargeable Rs. 100 to 500 donation to the "KADAM" institute engaged in education to children of construction labours.

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