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TMI BlogService tax payment under reverse charge on rent a cab serviceX X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax payment under reverse charge on rent a cab service X X X X Extracts X X X X X X X X Extracts X X X X ..... LL AMT EVEN IF SERVICE PROVIDER IS CHARGING ON 60 % OR NOT CHARGING SERVICE TAX AT ALL.PLEASE EXPLAIN , THANKS and REGARDS. As per above query please clarify the given notification because in the notification it is clearly mention 50 and 50 % each so please clarify for the same, Please mention on what percent service tax payment will be applicable for Service receiver.Thanks and Regards. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By PAWAN KUMAR: The Reply: Dear Sir, As per my view, the notification No.30/2012-ST dated 20.06.2012 has been amended by this Notification No.10/2014-ST dated 11.07.2014. S.No.7(a) of notification No.30/2012-ST provides that If service provider is raising the bill after claiming the abatement of 60%, then service receiver is liablle for 100% service tax under reverse charge mechanism. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .No.7(b) of notification No.30/2012-ST as amended by Notification No.10/2014-ST provides that if service provider is raising the bill on full value without claiming abatement, then service receiver is liable for 50% service tax under reverse charge mechanism. Remaining 50% service tax is to be paid by service provider. Reply By Vishal Goel: The Reply: Can service receiver Take Credit of Service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax paid to Rent A Cab Scheme Operator ? Reply By MARIAPPAN GOVINDARAJAN: The Reply: If the vehicle is owned by the service provider and it is his capital goods then the service receiver, in my opinion, is entitled to take credit. Reply By Ganeshan Kalyani: The Reply: If the service provider has taken abatement then he will not charge service tax on invoice and at the same he will forgo the inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut credit. In such cases the receiver liability is 100% (40% of liability as 60% is abatement). If he has not taken abatement then service tax will be equally paid by both service provider and the service receiver. Service tax credit is certainly not eligible on rent a car service. Reply By Aditya Kandoi: The Reply: If service provider is availing abatement then as per amendment in finance act 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 100% service tax payable by service receiver on abated value.If service provider is not availing abatement then both service receiver and service provider is liable for 50 % of service tax on full value of service Reply By Ganeshan Kalyani: The Reply: W.e.f. 01.10.2014 the ratio of paying service tax by provider of service and recipient of service is 50:50 and prior to 01.10.2014 the ratio was 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0:40. X X X X Extracts X X X X X X X X Extracts X X X X
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