Our Company receives services from a Bus contractor for carrying our staff from nearby railway station to office and back.
Bus contractor raises bills to us without charging any service tax on it. As per him service tax on total amount should be paid by us. Bus contractor has service tax registration number.
Whether this transaction comes under RCM (reverse charge mechanism) under rent-a-cab service ?
Whether 100% of service tax should paid by us as service receiver (non-abated value)?
or
Whether should we have to pay 40% portion of service tax (partial reverse charge) to govt and 60% of service tax on the bill by contractor.
03 May 2014
best solution under rcm (Notification 30-2012-st) service receiver can claim abatement of 40% (Notification 26/2012-st) on gross and paid S Tax so over all 4.944% on gross.
CAclubindia
