Service Tax on Rent-A-Cab Service

[Krishan Gopal]

Dear Sir,

Could you advise on if service provider does not avail cenvat credit then service receiver require a declaration on his letter head or mention in each invoice/bill that “We do not avail cenvat credit” therefore the receiver liability would be 40% otherwise 50% of the invoice value

K Gopal.

AI Summary

Clarification Needed on Service Tax Liability for Rent-A-Cab Services: Declaration Required for CENVAT Credit Abatement. A query was raised regarding the service tax on Rent-A-Cab services, specifically about whether a service receiver requires a declaration from the provider stating they do not avail CENVAT credit. This declaration would determine if the receiver's tax liability is 40% or 50% of the invoice value. One response requested clarification on the query, while another confirmed that obtaining such a declaration is necessary to avail the abatement on these services.