Service Tax on Rent a Cab

[Shashikant Goswami]

Hi,

we are using rent a cab services and paying full rate of service tax on 40% of Invoice value with no availing any service tax input credit.

Am i doing it in correct way?

Please advice.

Thanks

Shashikant

AI Summary

How to Pay Service Tax on Rent-a-Cab: 40% or 50% of Invoice? Check for Input Credits and Exemptions. A user inquired about the correct method of paying service tax on rent-a-cab services, specifically whether they should pay tax on 40% of the invoice value without claiming input credit. An expert advised that input service credit could be availed under certain notifications. The user further questioned the tax payment process when the service provider avails threshold limit exemption. Another expert suggested paying service tax on 50% of the invoice value if the service provider hasn't charged it, and recommended confirming whether abatement or threshold limits apply, ideally indicated on the invoice.