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Rcm-rent a cab

Lalit Nyati (Student) (487 Points)

30 January 2017

In case of rent a cab service by individual when SP (Individual) give invoice without levy of service tax part (taking abatement) than what amount of ST liability and what is cenvat credit rule for the same? SP is corporate entity.

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178215 Points)
Replied 30 January 2017

40% (i.e. 6%) liability on SR under RCM (with abatement)

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Lalit Nyati (Student) (487 Points)
Replied 30 January 2017

And what about CENVAT credit for SR?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178215 Points)
Replied 31 January 2017

With effect from 01.10.2014, certain amendments were made in Notification 26/2012, vide Notification 8/2014 ST Dt. 11.07.2014 and the amended entry reads as below.

9 Renting of motor cab. 40 %

(i) CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004;

(ii) CENVAT credit on input service of renting of motor cab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner:

(a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or

(b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value;

(iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004.