Reverse charge
This query is : Resolved
16 April 2013
Whether reverse charge is applicable when service provider is not registered in service tax.
16 April 2013
yes reverse charge is applicable, even if the service provider is a person getting ssp exemption and not registered.
the liability of SP and SR is different as both are the different person for law.
Also the ssp exemption is not available to SR. Hence if RCM(reverse charge Mechanism) is applicable, SR is liable to pay the service tax of his part.
the liability of SP and SR is different as both are the different person for law.
Also the ssp exemption is not available to SR. Hence if RCM(reverse charge Mechanism) is applicable, SR is liable to pay the service tax of his part.
16 April 2013
Thanks for reply.
Like our company is taking service to carry its workers and staff. whether it will be covered under 30/2012 reverse charge.
Further we have given car to senior employees which are taken on rent. whether this is covered.
Like our company is taking service to carry its workers and staff. whether it will be covered under 30/2012 reverse charge.
Further we have given car to senior employees which are taken on rent. whether this is covered.
16 April 2013
when taken on rent it is covered.
under : rent a cab service.
you have option to take the abatement or not.
in both the cases tax will be 40% on your co.
but the provider must be a indi/partnership/aop/huf and the reciver must be a body corporate, only then reverse charge applicable.
under : rent a cab service.
you have option to take the abatement or not.
in both the cases tax will be 40% on your co.
but the provider must be a indi/partnership/aop/huf and the reciver must be a body corporate, only then reverse charge applicable.
16 April 2013
whether we can take credit of service tax paid on reverse charge basis on rent a cab service. our business does not include such type of services.
16 April 2013
1st of all you can take the input only if you are a output service provider or manufacturer.
Now as per Clause B of rule 2(l) of cenvat credit rules, 2004
earlier input credit of rent a cab was not allowed.
now (after FINANCE ACT 2012)input of 'services provided by renting a motor vehicle' not allowed except you are providing few services like
(i) providing an output service of renting of such motor vehicle; or
(ii) transportation of inputs and capital goods used for providing an output service; or
(iii) providing an output service of courier agency”
hence, in my view. it should not be allowed as ccr.
because of the reason excluded from the definition of input service.
ohter experts comments may be also taken.
though for your knowledge. if it would have been a different service eligible as input service, then in case of reverse charge ccr is allowed on the basis of GAR-7 challan.
Now as per Clause B of rule 2(l) of cenvat credit rules, 2004
earlier input credit of rent a cab was not allowed.
now (after FINANCE ACT 2012)input of 'services provided by renting a motor vehicle' not allowed except you are providing few services like
(i) providing an output service of renting of such motor vehicle; or
(ii) transportation of inputs and capital goods used for providing an output service; or
(iii) providing an output service of courier agency”
hence, in my view. it should not be allowed as ccr.
because of the reason excluded from the definition of input service.
ohter experts comments may be also taken.
though for your knowledge. if it would have been a different service eligible as input service, then in case of reverse charge ccr is allowed on the basis of GAR-7 challan.
16 April 2013
Thanks i got this point.
As per Mega Exemption notification 25/2012:-
exemption given to:-
23(b) a contract carriage for the transportation of passengers, excluding tourism,
conducted tour, charter or hire; or
Now who is covered in this exemption who can take avail.
As per Mega Exemption notification 25/2012:-
exemption given to:-
23(b) a contract carriage for the transportation of passengers, excluding tourism,
conducted tour, charter or hire; or
Now who is covered in this exemption who can take avail.
16 April 2013
"contract carriage" means a motor vehicle which carries a passenger or passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum-- (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not included in the contract anywhere during the journey, and includes-- (i) a maxicab; and (ii) a motor cab notwithstanding that separate fares are charged for its passengers;
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Tds on building rent monthly
- Sale of property furniture sale
- Applicability of Tax audit u/s 44AB of income tax act, 1961
- Question about eligibility for tax rebate u/s 87A
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- BUYING PROPERTY COULD NOT FILE 26QB
- Gst input for FY 23-24
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- GST Regis.
- IGST Credit-Show cause notice issued-confusion
Trending Online Classes
CAclubindia
