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.
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.
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.
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;
CAclubindia
