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.
Company Seeks Guidance on Service Tax for Bus Services Under Notification No. 30/2012-ST; Addresses CENVAT Credit Eligibility A company inquired about the proper payment of service tax for bus services used to transport staff and workers, where the service provider did not charge service tax due to an abatement under Notification No. 30/2012-ST. The company paid service tax on 40% of the basic value and sought confirmation on its correctness and eligibility for service tax credit on freight outward. The response advised obtaining certification from the service provider regarding non-claim of CENVAT credit, ensuring service tax is charged, paying service tax on 40% of the bill, and adding 'Rent a cab operator' to their registration. (AI Summary)
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