E.KALAIKOVAN (Sr. Accounts Manager ) (340 Points)
02 February 2015Service Provider is an Individual and Service Receiver is Ltd company. Service provider is not charging Service tax. Service receiver is not paying service tax on reversal charges.
Service receiver says that they are not utilising the cab service for a month, or week (Not a fixed period) , utilised the cab service like an auto rickshaw, pick up and drop for their customers or officials.
is reversal charges for renting of cab is applicable only on fixed period?
Faraz
(Student)
(236 Points)
Replied 03 February 2015
Reverse charge is applicable. Liability of service receiver is on 40% of the amount. No provision for fixed period or hire on use exists. It is applicable on service received irrespective of period. Also keep in mind that no cenvat credit will be available.
CAclubindia
