SERVICE TAX PAYMENT

[SURYAKANT MITHBAVKAR]

We have received bill from travel agent for vehicle hire charges who is registered under Service tax act.

Regarding service tax he has mentioned service tax to be paid by service recipient by virtue of Notification No.30/2012 ST dated 20.06.2012 .

The above case if we want to take service tax credit can we pay 100% service tax and take credit for the same.

Pl. advice

AI Summary

Service Tax on Vehicle Hire: Recipient's Payment Obligations and Credit Eligibility Under Notification No.30/2012 ST A query was raised regarding service tax on vehicle hire charges billed by a travel agent registered under the Service Tax Act. The travel agent indicated that the service tax should be paid by the service recipient according to Notification No.30/2012 ST. The question was whether the recipient could pay 100% service tax and claim credit. One response advised confirming if the agent availed abatement; if so, pay 100% on the abated value, otherwise pay 50%. Another opinion suggested credit eligibility depends on whether the travel agent owns the vehicle. Input tax credit on vehicle hire is generally not allowed.