QUERY:
A company hires passenger car through out the year.
Pays Rs. 100000.00
Now ser taxable after abetment is 40%
Hence, ST to be paid on 40000.00
Now under reverse charge machanism Company to Pay only 20000.00
and Service provider to pay 20000.00
Kindly confirm if my contention is correct
CA Anil Agrawal
9431881950
agrawalaka@sify.com
A company hires passenger car through out the year.
Pays Rs. 100000.00
Now ser taxable after abetment is 40%
Hence, ST to be paid on 40000.00
Now under reverse charge machanism Company to Pay only 20000.00
and Service provider to pay 20000.00
Kindly confirm if my contention is correct
CA Anil Agrawal
9431881950
agrawalaka@sify.com
REPLY:1
Dear Anilji,
As per Notification No. 30/2012 service tax on rent-a cab scheme, if the abatement of 40% is there then 100% service tax will be paid by the service receiver and nothing to be paid by service provider. Therefore, your company needs to pay 100% service tax amount if there is a abatement of 40%.
Therefore, the intention is not correct as per the Service tax law.
Thanks & Regards
CA Sumit Kr Agarwal
9903979735
As per Notification No. 30/2012 service tax on rent-a cab scheme, if the abatement of 40% is there then 100% service tax will be paid by the service receiver and nothing to be paid by service provider. Therefore, your company needs to pay 100% service tax amount if there is a abatement of 40%.
Therefore, the intention is not correct as per the Service tax law.
Thanks & Regards
CA Sumit Kr Agarwal
9903979735
REPLY:2
Service recipient will pay service tax on Rs. 40,000/- (40%
of the value).
Service provider will pay service tax on balance 60% if he intends to avail
service tax credit, other wise he does not have to pay any service tax, if
the RCM is applicable.
Service provider will pay service tax on balance 60% if he intends to avail
service tax credit, other wise he does not have to pay any service tax, if
the RCM is applicable.
--
Thanks & Regards;
CA. Narayan Agarwal | FCA|
Partner | D A V A & Associates | Chartered Accountants |
Mercantile Building, | A Block, Room # 18 | 1st Floor |
9, Lal Bazar Street | Kolkata 700 001 |
Phone +91 33 22313940 | Cell +91 9874355518 |
mail: kolkata@dava.co.in| web: www.dava.co.in |
Offices: Chandrapur, Delhi, Kolkata
Thanks & Regards;
CA. Narayan Agarwal | FCA|
Partner | D A V A & Associates | Chartered Accountants |
Mercantile Building, | A Block, Room # 18 | 1st Floor |
9, Lal Bazar Street | Kolkata 700 001 |
Phone +91 33 22313940 | Cell +91 9874355518 |
mail: kolkata@dava.co.in| web: www.dava.co.in |
Offices: Chandrapur, Delhi, Kolkata
REPLY:3
Dear Anil,
The extent of service tax liability to be discharged by the service
receiver would depend upon whether cab vendor(service provider) has claimed
abatement on the value of services provided by them. If the Cab Vendor had
availed abatement, then ST of 12.36% on 100% of the value of service is to
be paid by the service provider. However, if the vendor has not availed
abatement, then the service receiver will be liable to pay ST on on 40% of
the value of taxable service.
Thus, in your case, you will be liable to pay ST of 12.36%*40000 = Rs.4944
The extent of service tax liability to be discharged by the service
receiver would depend upon whether cab vendor(service provider) has claimed
abatement on the value of services provided by them. If the Cab Vendor had
availed abatement, then ST of 12.36% on 100% of the value of service is to
be paid by the service provider. However, if the vendor has not availed
abatement, then the service receiver will be liable to pay ST on on 40% of
the value of taxable service.
Thus, in your case, you will be liable to pay ST of 12.36%*40000 = Rs.4944
shashi chirania
Dear Mr. Anil
Sorry for the mistake in above reply.
Here is the correct reply
The extent of service tax liability to be discharged by the service
receiver would depend upon whether cab vendor(service provider) has claimed
abatement on the value of services provided by them. If the Cab Vendor had
availed abatement, then ST of 12.36% on 100% of the value of service is to
be paid by the service* receiver*. However, if the vendor has not availed
abatement, then the service receiver will be liable to pay ST on on 40% of
the value of taxable service.
Thus, in your case, you will be liable to pay ST of 12.36%*40000 = Rs.4944
Sorry for the mistake in above reply.
Here is the correct reply
The extent of service tax liability to be discharged by the service
receiver would depend upon whether cab vendor(service provider) has claimed
abatement on the value of services provided by them. If the Cab Vendor had
availed abatement, then ST of 12.36% on 100% of the value of service is to
be paid by the service* receiver*. However, if the vendor has not availed
abatement, then the service receiver will be liable to pay ST on on 40% of
the value of taxable service.
Thus, in your case, you will be liable to pay ST of 12.36%*40000 = Rs.4944
shashi chirania
REPLY:4
As per Notification no 30/2012 ST dt 20.06.2012, it is
mentioned that in
respect of service provided or agreed to be provided by way of renting
motor vehicle designed to carry passengers *on abated value *to any person
who is not engaged in the similar line of business, 100% service tax
shall be paid by SR. Ie. on Rs. 40000/- in the instant case. any person
respect of service provided or agreed to be provided by way of renting
motor vehicle designed to carry passengers *on abated value *to any person
who is not engaged in the similar line of business, 100% service tax
shall be paid by SR. Ie. on Rs. 40000/- in the instant case. any person
Satish Bansal
No comments:
Post a Comment