TaxTMI 
TaxTMI 
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...
Rent-a-cab
18 Oct 2016 
3 Replies 
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Guest 
Reverse charge for rent a cab: corporate recipients must bear a share of service tax; abatement shifts allocation to recipient.
Rent a cab services by an individual to a body corporate fall under the reverse charge mechanism, allocating service tax liability between provider and recipient. If the provider has not taken abatement, tax is apportioned between the provider and the corporate recipient in the proportions specified by the notification. If the provider has opted for abatement, the recipient bears the tax on the taxable proportion specified while the abated provider has no tax liability on the remaining portion. (AI Summary)
Rent a cab services by an individual to a body corporate fall under the reverse charge mechanism, allocating service tax liability between provider and recipient. If the provider has not taken abatement, tax is apportioned between the provider and the corporate recipient in the proportions specified by the notification. If the provider has opted for abatement, the recipient bears the tax on the taxable proportion specified while the abated provider has no tax liability on the remaining portion. (AI Summary)