Reverse charge for rent a cab

This query is : Resolved

Basavaraj (Querist)
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25 April 2014 My Client is a private limited company providing Rent a cab services to corporates and individuals.

Whether the 100% reverse charge applicable to them. Currently they are paying service tax at 40% abated value.

on reading the reverse charge mechanisim, i see that reverse charge is applicable only when one individual/PF/AOP raises an invoice on company.

However a similar private limited company operating in Pune is not charging service tax.

Getting confused. Please clarify urgently.

please give me the reference notification also please

KUMAR trp707@gmail.com

KUMAR trp707@gmail.com (Expert)
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26 April 2014 TWO CHOICE IN RCM IN CAB SERVICE
1 PROVIDER + RECEIVER PAYABLE AS PER 30/2012-ST 60 +40

2 ONLY RECEIVER PAID AS PER 26/2012-ST 60% ABATEMENT VALUE.

CHOICE IS COMPANY MOST OF COMPANY PAID ONLY AND AVOID FOR ADDITIONAL BURDEN OF S TAX.

SO SERVICE PROVIDER NOT TAKE REGISTRATION

Basavaraj

Basavaraj (Querist)
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26 April 2014 That means Company need not charge service tax in their invoice, where it is as per Notification 26/2012

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