NILAY BARAT (DEPUTY MANAGER FINANCE & ADMINISTRATION) (41 Points)
09 February 2016We are a Pvt. Ltd Co. Availing Rent a-Car Service and Contract carriage services from different service provider.
Please let me know our Tax liability on RCMC for the following cases.
1 Service Provider not charged any amount as Service Tax in their Bill -
2 Service provider chargging Service tax in Invoice @ 5.80%.
Thanks
Nilay Barat
Govind Shah
(CA Final)
(75 Points)
Replied 11 February 2016
1. If the Service provider does not charge service tax, then you will have to make payment of service tax under reverse charge at 14.5% on 40% of the value after taking abatement. (100% liability on Service receiver)
2. Ask the Service provider to charge at the rate of 7.25% or not to charge anything. As the Partial reverse charge has been changed and you will have to pay the balance 7.25% under reverse charge.
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