Rent a Cab Service

[Asked by Guest]

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?

AI Summary

Reverse charge on rent a cab makes the service receiver primarily liable for service tax under specified valuation rules.
Service tax on rent a cab is levied on an abated basis-tax on 40% of invoice value where the provider has not taken CENVAT credit; where CENVAT is availed the value is unabated. Payment is under the Reverse Charge Mechanism, so the service receiver is generally liable; in the abated case the receiver pays the entire tax, while in the unabated case the tax liability is apportioned between receiver and provider according to the provider's CENVAT position.