Service tax on car hire charges

aishwarya s raghavan (student) (224 Points)

15 January 2013  
Dear Friends! What will be the company's stand in the following scenario? The company has availed car hire services from an individual. The individual has not included service tax in the invoice as his turnoverhas not exceeded 10 lacks. Now the company is liable to pay 40% of the service tax on the invoice value under the reverse charge mechanism. My question is will the company be eligible to take credit of tthe amount so paid?