Calculation for Cab Hiring Firm

[Dibyendu Bhattachayya]

Dear All,

What should be the service tax calculation car rentals if they don't charge tax on their invoice?Please also site a example.

 

 

 

[Brijesh Verma]

Service Tax calculation on CAR rentals has to be done after taking abatement under Notification no 26/2012

AI Summary

Service tax calculation must apply abatement under Notification no 26/2012 even if the invoice omits tax. Service tax for car rental services must be calculated even if invoices do not charge tax, with the taxable value determined after applying the abatement under Notification no 26/2012, so the liability and computation require taking the prescribed abatement into account when deriving the taxable portion of receipts.