Rent-a-cab

[Arunachalam siva]

Sir,

Rent-a-cab service provided by individual to only one limited company and having turnover between 10 to 12 lacs. Said individual is not charging service tax to the company. In this case, let know the liability of Individual and company...

AI Summary

Service Tax Split for Rent-a-Cab Services: Provider and Corporate Share Liability under Reverse Charge Mechanism. An individual providing rent-a-cab services to a single limited company with a turnover between 10 to 12 lakhs is not charging service tax. The service falls under the reverse charge mechanism, requiring both the service provider and the corporate recipient to share the service tax liability. If the provider has not opted for abatement, each pays 50% of the service value. If abatement is chosen, the recipient pays 40%, and the provider pays none. The discussion seeks clarity on the service tax obligations for both parties involved.