Dear Sir,
Just want 1 clarification. We are a parternship (LLP) firm engaged into car rental business as an aggregator. We take cabs from various vendors and provide the services to corporates. We are registered under service tax.
Problem:
My vendors charges me service tax @ 4.944% on total bill amount. I provide services under RCM to corporates and corporates pay on behalf of me. I am not able to set-off or claim service paid to vendors.
Question
1. Is it correct to pay service tax to my vendors ? [B2B under rent cab to rent cab]
2. How sud I claim back for paid service tax, as in this scenario, we are paying it twice to government.
3. To overcome such scenario of double taxation, what is the way out.
4. If I provide services to a Pvt Ltd company engaged into cab rental (same services), then how sud I charge service tax to them, at what rate and can I recover tax from them.
Suggestion required:
If we convert our LLP into Pvt Ltd, then also sud we require to pay service tax to my vendors ?
Please provide your guidence on the same.
Ganesh.
CAclubindia
