Service tax liability on renting of motor vehicle under par

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2012 We are Pvt.Ltd. Company and we are receiving bills from Motor Vehicles Suplier for carrying employees to factory. In the respected bills the are charging service tax on abated value (only 4.94%).

For Example
If Bill Amount 5000/-
Service Tax 4.94% 247/-
...............................
Total 5247/-

So My Question is what is the tax liability applicable to us under partial
reverse charge mechanism?

Sir Kindly inform the percentage of service tax applicable to us in above conditions?

And also We are eligible to get credit on liability paid by us and payment made to cab operator?

CA Manish

CA Manish (Expert)
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02 November 2012 If they are charging on abatedvalue then you have to pay service tax under reverse charge mechanisim.

you can take CENVAt credit of service tax paid on the basis of paymnet challan.

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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02 November 2012 Agreed with Manish , Advisable not to take cenvat credit if you are providing services other than

1.courier agency
2.tour operator
3.rent-a-cab
4.cargo handling agency
5.goods transport agency
6.outdoor caterer
7.pandal or shamiana contractor

no manufacturer or no service provider other than those mentioned above can avail credit on this service.

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