Abatement - Renting of motorcab - Service Tax Practice Manual / Ready Reckoner - Service Tax

Sr. No. 9 Renting of motorcab (w.e.f. 1.7.2012) Scope of abated service - N otification no 26/2012-ST dated 20.6.2012 From 1.7.2012 to 30.9.2014 9. Renting of any motor vehicle designed to carry passengers Effective Rate of tax : 40% of Service Tax prescribed u/s 66B Conditions : CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. From 1.10.2014 - Notification No. 08/2014 - dated 11.7.2014 9. Renting of motorcab Effective Rate of tax : 40% of Service Tax prescribed u/s 66B Conditions: (i) CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004 ; (ii) CENVAT credit on input service of renting of motorcab has been taken under the provisions of the CENVAT Credit Rules, 2004 , in the following manner: (a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or (b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value; (iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004 Definitions and meanings: 65B (41) renting means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property; Explanation: as appended to the Notification w.e.f. 1.4.2016 vide Not. 08/2016 - Dated 1-3-2016, BA. For the purposes of exemption at Serial number 9, the amount charged shall be the sum total of the amount charged for the service including the fair market value of all goods (including fuel) and services supplied by the recipient(s) in or in relation to the service, whether or not supplied under the same contract or any other contract: Provided that the fair market value of goods and services so supplied may be determined in accordance with the generally accepted accounting principles. CIRCULAR NO. F. No. 334/8/2016-TRU. It is being made clear by way of inserting an explanation in the notification No. 26/2012-ST that cost of fuel should be included in the consideration charged for providing renting of motor-cab services for availing the abatement