Service Tax on Tour Operator & Service tax credit Freight outward

[NANDKUMAR SAGWEKAR]

1.  Our Company has taking services of Bus for carrying staff & worker from resident to company and return. Service provider are not paid any service tax in his monthly bill because he has taken abatement under notification of Notification No. 30/2012-ST our company has paid service tax on 40% on basic value.  

Let us know whether we have paid service tax properly. 

2.  Whether we can get service tax credit on Freight outward.

[NANDKUMAR SAGWEKAR]

You have to do the following :

1. Obtain certification on Invoice from the service provider that , they have not claimed the cenvat credit on Inputs , input services , capital goods for providing the service.

2. They need have to charge the ST in their bill

3. You have to pay the service tax on @40% of bill amount 

4. You have to add the service ' Rent a cab operator '  in your registration

 

 

AI Summary

Service tax abatement on transport services requires supplier to forgo cenvat credit and to charge tax in the invoice. The supplier's entitlement to abatement for bus transport services is contingent on not claiming CENVAT credit on inputs, input services or capital goods; accordingly the supplier must charge service tax in the bill and certify non claim of credit, while the recipient must obtain that certification and add the rent a cab/operator service in its registration. The document does not resolve entitlement to credit for freight outward.