Sir,
We have taken hiring vehicle service via tender. Service provider (individual) has ST Code and turn over>10 lac. He has issued an invoice (Claiming 50% ST liability on his part) as under:-
Base Amt = 18000
ST 7% = 1260
SBC.25% = 45
________________
Total Rs. = 19305/-
Now do we need to pay 50% Service Tax to ST Authority after payment of this bill ?
How much ST, the service provider will have to pay ?
PSU and service provider share 50% service tax on vehicle hire; abatement queries raised for excess payment adjustment. A service receiver, a public sector undertaking (PSU), inquired about service tax obligations for hiring vehicle services from an individual service provider with a turnover exceeding 10 lakh. The provider issued an invoice with a 50% service tax liability. Experts advised that both the service provider and receiver must each pay 50% of the service tax and Swachh Bharat Cess. The receiver asked if the provider could claim abatement to reduce tax liability. It was suggested that any excess tax paid by the provider should be adjusted or refunded, and the receiver should ensure compliance with their tax obligations. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
