SERVICE TAX PAYMENT, Service Tax

[SURYAKANT MITHBAVKAR]

We have received bill from travel agent for vehicle hire charges who is registered under Service tax act.

Regarding service tax he has mentioned service tax to be paid by service recipient by virtue of Notification No.30/2012 ST dated 20.06.2012 .

The above case if we want to take service tax credit can we pay 100% service tax and take credit for the same.

Pl. advice

Posts / Replies

[Ganeshan Kalyani]

You will have get clarification from your service provider that whether he has availed abatement. If the answer is in affirmative then you will have to pay 100% service tax on abated value. if the answer is no then you will have to pay service tax on 50% of service value and balance will be paid by the service provider. Further the input tax credit on vehicle hire is not allowed.

[MARIAPPAN GOVINDARAJAN]

If the travel agent is owning the said vehicle then the credit may be eligible, in my view, otherwise it is not eligible.