Rent a Cab Service

[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

Rent a Cab Service Tax: 50% Liability for Service Provider; Equal Split from October 1, 2014, for Non-Abated Values. In a discussion about service tax for Rent a Cab Service, a user inquired whether the service receiver is responsible for paying a 12.36% tax on 50% of the bill value, with the remaining 50% abated, effective from October 1, 2014. The response clarified that this is incorrect, stating that the remaining 50% is the service provider's responsibility. Before October 1, 2014, the split was 60% for the service provider and 40% for the service receiver, but it changed to an equal 50% split for non-abated values.