Rent a Cab Service

[Asked by Guest]

In Rent a Cab Service, As a service receiver has to pay service tax 12.36% on 50% of the bill value and balance 50% abatement which effect from 01.10.2014. My question , Is it a correct or not ?

reply soon...

[PAWAN KUMAR]

NO.

The remaining 50% is the service provider portion.

Prior to 01.10.2014, it was 60%/40% - service provider/Service receiver.

Now it is 50% each in case of non abated value.

AI Summary

Service tax apportionment in rent a cab: tax liability now equally split between provider and receiver, replacing prior uneven split.
The change in rent a cab service taxation reallocates taxable liability so that the non abated value is equally split between provider and receiver; the receiver is not liable for the portion treated as the provider's share. Previously the allocation had been an uneven split favoring the provider.