RCM ON RENT A CAB-regarding

[RAVI ANJARA]

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 ?

AI Summary

Reverse charge on rent a cab services: receiver must discharge its share of service tax under RCM; supplier must correct any excess payment.
The service receiver must discharge its portion of service tax and swachh bharat cess under the reverse charge mechanism where the supplier billed on full value without abatement; the supplier must account for its share and, if tax was paid in excess, seek refund or self-adjust in future returns and reflect the corrections in ST-3. The receiver's RCM obligation stands regardless of supplier error, and parties may seek supplier declarations or assurances; a commentator queried whether PSU status affects applicability.