RENT A CAB SERVICE

[Tax Baniya]

PLEASE CONFIRM IN THE SERVICE TAX RETURN FILING ST-3 IN CASE OF FILING BY THE SERVICE RECEIVER UNDER REVERSE CHARGE MECHANISM

IT WILL SHOWN AS AN ABATEMENT OR PARTIAL REVERSE CHARGE.

[YAGAY andSUN]

Dear Tax Baniya,

It can be both. If you had paid service tax on 40% of the value of the bills raised by the service provider and the service provider had declared that they had not availed the CENVAT credit on Inputs, Input Services and Capital Goods. You would it shown as PRCM after availing the abatement notification.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

Filing Service Tax Return ST-3: Rent-a-Cab Services Can Use Abatement and Partial Reverse Charge Under Certain Conditions A query was raised by a user regarding the correct way to file a service tax return (ST-3) under the reverse charge mechanism for a rent-a-cab service. The question was whether it should be shown as an abatement or partial reverse charge. A response clarified that it could be both if the service tax was paid on 40% of the billed value, provided the service provider did not avail CENVAT credit on inputs, input services, and capital goods. It should be shown as partial reverse charge mechanism (PRCM) after availing the abatement notification.