Query on rent a cab service

This query is : Resolved

Nagasai (Querist)
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14 April 2016 Hi Expert,

If a service provider is an proprietor and just provided cab(not driver) to a company with an agreement of paying fixed amount of Rs.21000 per month irrespective of distance & trips, driver is of company itself.
No invoice will be provided by service provider.

Kindly give me clarification on taxability, RCM,Abatement with respect to service receiver.

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)
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14 April 2016 Service tax applicable company liable to pay on 40% value if provider not availing cenvat credit of input services otherwise 50-50 liability would be applicable and also abatement only applicable when fuel cost is included in value otherwise service tax on 50% value to he paid by company