Rent-a-car - Notification no.8/2014 dated 11th July, 2014

[Ganeshan Kalyani]

Dear Sir,

I would like to have clarification on Notification no. 8/2014 dated 11th July 2014 amending the notification no. 26/2012 dated 20th June, 2012. In serial no.9 in notification 26/2012,' Renting of any motor vehicle designed to carry passengers'' which is already amend with ''Renting of motorcab'' and the conditions in colomn four is amended vide Notification 8/2014.

The conditions for abatement is amended with respect to provider of service should not have taken credit on inputs and capital goods and credits on inputs on service should have taken subject to the conditions given.

I would like to have clarification whether the service recipient who pay service tax under reverse charge will be required to collect any declaration from the service provider as regards the conditions which have brought vide notification for availing the abatement of 60%.

regards,

ganesh

AI Summary

Clarification Sought on Service Tax Amendments: Reverse Charge Requires Provider Declaration on CENVAT Credit for Vehicle Rentals A user seeks clarification on Notification No. 8/2014 amending Notification No. 26/2012 regarding service tax on renting motor vehicles. The query focuses on whether service recipients paying tax under reverse charge need a declaration from service providers about not availing CENVAT credit. A consultant confirms the necessity of such a declaration, suggesting it be on the service provider's letterhead. Another contributor notes that small providers may be unaware of this requirement. The user acknowledges the importance of obtaining this declaration, especially after the recent amendments.