Hi,
Rent cab service - the service tax amount claimed by (Registered) service provider on 40% of the total value, My question is who has to pay the service tax amount (service provider or receiver)? shall i provide the service tax amount to the provider?
Service Receiver Must Pay Service Tax on Rent-a-Cab Services Under Reverse Charge, Per Notification No. 26/2012-ST. A discussion on a forum addressed the responsibility for paying service tax on rent-a-cab services. The query raised was about whether the service provider or receiver should pay the service tax. According to the response, under Notification No. 26/2012-ST, service tax is calculated on 40% of the invoice value if no CENVAT credit is taken. Under the reverse charge system, the service receiver is responsible for paying the service tax. If CENVAT credit is availed, the tax liability is split between the service provider and receiver, with varying percentages depending on the date and conditions. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
