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Confusion

307 views 2 replies

Kaushik

General Manager

78 Points Joined December 2012

I give buses and cars on hire and charge service tax @ 4.94%. One car owner who is also in same line told me I shud not charge S.T. to anyone if I m charging @ 4.94% Also pls tell me if one vehicle owner shud charge S.T. to another owner if other one has taken car on hire from first one and given to client on rent

Replies (2)

Harendra Kumar

Tax Advisor

1326 Points Joined July 2011

Sir,

In this regard you should charged service tax @ Nil only recipient liability to pay service tax under RCM @ 40% @ 4.94 on abate value if not abate then you charged @ 60% of service tax @ 7.42 and rest recipient only. In both case recipient liability to pay tax 40% @ 4.94.

Further clarification read notification 30/2012. dt. 20.06.2012. If you having more observation plz brief it.

Kaushik

General Manager

78 Points Joined December 2012

Thank you very much sirji for the reply. Pls tell me if I raise a bill to an individual or to some small car operator how much shud I charge coz not every client is registered in service tax