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

Reverse charge on rent-a-cab: pay service tax on abated invoice value when supplier hasn't charged and consider cenvat credit.
Recipients of rent-a-cab services may either avail cenvat credit under the prescribed notifications and procedures or discharge liability under reverse charge; when the service provider has not charged tax-due to abatement or threshold exemption-practical advice is to pay service tax on the abated invoice value, and suppliers are recommended to endorse invoices to indicate abatement or threshold status.