Invoice of rent a cab agency- some queries

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The agency (proprietor) giving car on hire to the company has not charged service tax in the invoice though there is ST no. in the same.

Under such scenario should the company ask the provider of rent a cab service to specify/disclose if he is using abatement or not -- otherwise how will the receiver determine its liability of 100% or 40% under partial reverse charge mechanism.

Can the receiver deduct the sum paid by it to govt. from the provider or will it be a matter of rate negotiation between the two.

Regards,

Replies (1)

The company has to pay service tax on 40%.  Company cant recover the same from the service provider.  It shall be recovered on rate negotiation only.


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