Rent-a-cab

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2013 WHAT IF THE SERVICE PROVIDER HAS RAISED BILL FOR PROVIDING RENT A CAB SERVICE AND CHARGED 40% SERVICE TAX....BUT THE SERVICE RECIEVER HAS LIABILITY OF 60% AND SERVICE PROVIDER HAS 40% LIABILITY????
WHAT SHOULD WE DO?

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
Follow

28 May 2013 the above treatment is a per the ST laws.in case you are the service recepient,you need to directly pay 60% of ST to the govt. and 40% to the serviuce provider.thIS IS AS PER THE partial reverse charge mechanism of ST laws

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2013 `````````````````````````````````````````````````````

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2013 According to partial reverse charge...40% of ST is to be paid directly to GOVT and 60% to service provider?? its the opposite??

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

16 June 2013 1)Service Provider should be HUF, Individual, firm

2)Service receiver – Business entity registered as body corporate

3)Service tax liability : Tax on 40% of value by service receiver and Nil by service provider. If the service provider intends to avail Cenvat credit, he can pay service tax on balance 60%. Thus, service receiver is liable to pay service tax only on 40% value.

Thanks & regards
Ganesh babu k