Invoice of car hire service provider - 30/2012

Friends

I believe the undermentioned topic is being widely discussed everywhere these days under new service tax applicability regime.

We have received car hiring for passenger service from a proprietorship entity registered with Dept. The invoice reads as follows:

Basic value                                                                   729

service tax --  12.36% on 40%                                     36    (means the SP uses abatement provisions)

Total payable                                                                765

My understanding is that pursuant to notification 30/2012 under partaial reverse charge mechanism, we pay to Govt. Rs 36 ie 100%  as service receiver and deduct this amount while paying to SP in addition to applicable TDs under Income Tax Act 1961.

Am I correct.

Regards,