Service tax on car hire charges

528 views 2 replies
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?
Replies (2)

have a similar query buddy.....

under reverse charge machanism.

Service tax is payable by receipient. Even if service tax provider is availing SSI exemption of 10 lacs.

 

Service tax credit can be claimed by the company. in such case valid document will be GAR 7 challan instaed of invoice.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 June 2026
Article Assistant

Alvino Consultancy LLP

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details