Abeted and not abeted value in rent a cab service

[Asked by Guest]

Dear Sir,

We are manufacturer and we availed the rent a cab service for carry our employees. ans few service providers are charge the service tax in the invoice on 50% of the invoice value. we paid rest service tax on 50% under RCM.

And some service providers are not charges any service tax in invoice due to not they have not cross their thresh hold limit. In this case also we paid the service tax on 50% of invoice value under RCM.

My query is.

1) Can we paid service tax on 40% of invoice value as per abetted scheme if we want to avail the abetted scheme what document we should from the service provider ?

2) As we are not taking Cenvat Credit of Service tax on car rental Service so this 10% is loss for company .

3) can you explain me about the abetted and non-abbeted scheme under rent a cab service under Reverse charge mechanism,

Regards

Swapneswar Muduli

AI Summary

Reverse charge on rent a cab services requires recipients to discharge tax where providers claim abatement or exemption.
Under the reverse charge mechanism for rent a cab services, recipients must discharge tax based on whether the provider avails statutory abatement or small scale exemption. A provider availing abatement results in recipient liability on the abated value and affects cenvat credit entitlements; if the provider does not avail abatement or claims exemption, the recipient must still discharge its share on the non abated or specified portion. Proper invoice remarks serve as primary evidence of abatement or exemption and recipients are not automatically liable for provider mistakes if records support their position.