Service tax payment under reverse charge on rent a cab service

[SANDESH SHINDE]

Dear Sir,

AS PER NOTIFICATION 10/2014 DATED 11.07.2014 IS SERVICE RECEIVER W.E.F 01.10.2014 WILL BE LIABLE TO PAY SERVICE TAX UNDER REVERSE CHARGE BASIS ON RENT A CAB SERVICE ON 50% OF THE BILL AMT EVEN IF SERVICE PROVIDER IS CHARGING ON 60 % OR NOT CHARGING SERVICE TAX AT ALL.PLEASE EXPLAIN , THANKS and REGARDS.

As per above query please clarify the given notification because in the notification it is clearly mention 50 and 50 % each so please clarify for the same, Please mention on what percent service tax payment will be applicable for Service receiver.Thanks and Regards.

AI Summary

Service Tax on Rent-a-Cab: 100% by Receiver with 60% Abatement; 50:50 Split Without Abatement A discussion on a forum addresses the service tax payment under reverse charge for rent-a-cab services, following Notification No.10/2014-ST dated 11.07.2014. The query seeks clarification on the tax liability split between service providers and receivers. Responses clarify that if the service provider claims a 60% abatement, the receiver pays 100% of the service tax. Without abatement, the tax is split 50:50 between both parties. The forum also discusses the eligibility for service tax credit, noting that credit is not available for rent-a-cab services if abatement is claimed.