Service tax on Rent Cab under reverse charges

[Krishan Gopal]

Sir, would you give clarification on service tax on renting of a motor vehicle under reverse charges-

what is the difference between abated value and non abated value, if non abated value then service provider pay service tax on 50% value of service.

Gopal

AI Summary

Reverse charge on motor cab rent: taxable base may be full or abated, altering who bears service tax burden.
Reverse charge on renting motor vehicles hinges on whether the taxable base is the non abated value (full charges raised by the cab owner) or an abated value (a reduced taxable portion); notifications and subsequent amendments cited in the discussion prescribe the applicable reduced taxable portion, which determines the taxable base and availability of input tax credit.