Rent a cab services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2016 A manufacturing company is receiving a service of transporting their employees between the residence and office. And the Service Provider is an individual;-
1) Whether this is a Rent a Cab Service or Transportation of Passenger services.
2) At what rate the Service Tax has to be paid by the Company if the Service provider raises invoice Containing service tax for 50% of the bill value. Whether this 50% service tax can be utilised against Excise Duty payable
3) At what rate service tax to be paid, if the service provider's bill does not contain any service tax.(Abatement has been Availed)

Please guide me... Thank You

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 May 2016 1 This is Rent a Cab service.
2 For the balance 50% the company has to pay the service tax under RCM. Cenvat credit on this may be claimed against excise duty payable.
3 Service tax has to be paid on 100% value under RCM.

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2016 in the above mantioned case where abatemnent is availed @60% the remaining 40% of the bill is liable for service Tax, is that Right??

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 May 2016 Yes it is right................