13 April 2013
Please suggest me on the following? A company is paying rent of a car leased from an individual (Without transfer of ownership). In this case reverse charge is applicable and company have to pay service tax. Please let me know that in Which service this will be included. As i asked froM service tax department, they said that it will be cover under supply of tangible goods. is it right or not? As i already applied in Supply of tangible goods but now at the time of filing of return, it ask me partial rate of tax which i paid is 40% but in return it is shown 100%. What should i do? Please help me as soon as possible.
15 April 2013
If you have approached the department for the selection of service, then in that case you must have ask them about the tax liability on service provider. Because there is no reverse charge in case of supply of tangible goods. one side you are selecting the service 'supply of tangible goods' and on the other hand you are paying tax @ 40percent on taxable value. this 401% tax is required to be paid in the situation of 'rent a cab service'. So dear, follow one practice at a time. According to me you have deposited the right service tax but using the wrong service head. many organisations use car services for there employees, which got covered under 'rent a cab service' and also 40% liability is on them.
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