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.

[Akash Deep]

Dear Krishn Gopal Ji

kindly draft your query in clear terms

[YAGAY and SUN]

Getting declaration is necessary to avail the abatement on Rent a Cab services.

AI Summary

Abatement for rent a cab services requires a receiver's declaration of non availment of CENVAT credit to secure reduced taxable value.
Abatement for rent a cab services requires a written declaration from the service receiver confirming non availment of CENVAT credit; if such declaration is furnished on letterhead or invoice, the provider may apply the reduced taxable valuation, whereas absence of the declaration results in treating a larger portion of the invoice value as taxable.