Reverse charge on renting of car for directors of company

This query is : Resolved

SATISH BHAMARE (Querist)
Follow

28 November 2013 Dear All,

Please guide me on Service Tax applicable under reverse charge mechanism for renting a car for director/employees of company, I have recd. a bill from Proprietary concern with out charging service tax p. tell me that in this case our company have to pay service tax or not?? if yes then @ what %, what is abatement %

Thnaks in advance

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

28 November 2013 if bill is in the name of director/employees no reversecharge applicable
.
.
if bill is in the name of comapany reversecharge applicable
.
.
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.

Message likes : 1 times

SATISH BHAMARE

SATISH BHAMARE (Querist)
Follow

28 November 2013 Thanks a lot ganesh ji....can u able to provide me any specific notification or circular on the same as I have to convince my seniors.....

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

28 November 2013 Notification 30/2012

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok