Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Service tax - cab hiring

sathees kumar a (Accounts Officer) (37 Points)

25 October 2013

Please explain, for cab hiring, what is the service tax percentage applicable for service provider and service receiver as per latest service tax... and input credit benefit allowed for this. Thanks Sathees Kumar A

Reply
Follow
Share

2 Replies

Sameer (.) (252 Points)
Replied 25 October 2013

Liability of service tax will be as under : -


	Percentage of service tax payable by the person providing service	Percentage of service tax payable by the person receiving the service
In case abetment is claimed	Nil	40%
In case NO abatement claimed	60%	40%

In case abetment is claimed NO CENVAT credit of service Tax will be allowed against input service to the output Service Provider

In case NO abatement is claimed i.e. tax is paid on 60 % value @ 12.36% then CENVAT credit of input services will be allowed to the output Service Provider

NO CENVAT credit of Service Tax will be allowed to the person who is availing "Rent a Cab" Service