RCM ON RENT A CAB-regarding, Service Tax

[RAVI ANJARA]

Sir,

We have taken hiring vehicle service via tender. Service provider (individual) has ST Code and turn over>10 lac. He has issued an invoice (Claiming 50% ST liability on his part) as under:-

Base Amt = 18000

ST 7% = 1260

SBC.25% = 45

________________

Total Rs. = 19305/-

Now do we need to pay 50% Service Tax to ST Authority after payment of this bill ?

How much ST, the service provider will have to pay ?

Posts / Replies

[PAWAN KUMAR]

Dear Sir,

As per my view, the service provider has not claimed abatement in his bill and charged the service tax on full value. As per S.No.7(b) of Noti.No.30/2012-ST dated 20.06.2012 amended by Not.No.10/2014-ST dt. 11.07.2014 effective from 01.10.2014, the ratio between the service provider and service receiver is 50% each as per which you need to pay the remaining 50% amount of service tax i.e. 1260/- and swachh bharat cess i.e.45/-. The same amount of service tax i.e.1260/- and swachh bharat cess i.e. 45/- will be paid by service provider.

[MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Pawan Kumar.

[RAVI ANJARA]

Sir,

THANKS A LOT

Can we ask the service provider to claim abatement in his bill so that the ST Liability may be reduced and if so, how the above bill format should be ?

[KASTURI SETHI]

Sh.Ravi Anjara Ji,

You are required to discharge your own Service Tax liability ( due to you) irrespective of the fact that Service Provider has paid in excess. You are not to suffer because of mistake committed by Service Provider. In case Service Provider has paid Service Tax in excess, he has to either apply for refund or self-adjust in the next month or quarter, (whatever the case may be) and reflect in ST-3 return. Remedial measure is to be taken by him.

[Ganeshan Kalyani]

The provider is individual I.e. one condition is fulfilled but whether the receiver (queriest) is a company or not, it is not mentioned in the query. Further I agree with the reply of Pawan Kumar about liability. And I strongly support the views of Kasturi Sir about the compliance part. Thanks.

[RAVI ANJARA]

The service receiver is a PSU

[RAVI ANJARA]

DO WE NEED TO GET ANY DECLARATION/ASSURANCE FROM SERVICE PROVIDER FOR SERVICE TAX PAYMENT ON HIS PART ?

[Ganeshan Kalyani]

In my view PSU is not mentioned in reverse charge notification. Hence the receiver should pay full service tax. I request experts to share their view after considering queriest post dated 01.01.2016. Thanks.