notification 30/2012 reverse charge

[satbir singhwahi]

what is the position as to rent a cab service provider , previously paying service tax on 40% of invoice value. now by noti 30/2012 . please clarify the current position.

[Vijay Chitte]

As per Notification no 30/2012-ST, If you provide services to any Body corporate and if you not avail any Cenvat credit on inputs, capital goods or input services then you do not charge any service tax in invoice, simply you have to charge your gross amount (without service tax), But, you have to make declaration in invoice that service tax payable @40% on gross amount by service recipient as per the said notification.

Further, If you avail any Cenvat credit on inputs, capital goods or input services then you have to charge service tax @60% on gross amount and  make declaration in invoice that balance service tax payable @40% on gross amount by service recipient as per the said notification.

 

AI Summary

Reverse charge: rent a cab suppliers must state recipient liability for portion of service tax on invoices. Where a rent a cab service is supplied to a body corporate, if the supplier does not avail Cenvat credit the supplier invoices the gross amount without service tax and must declare that service tax equal to forty percent of the gross amount is payable by the service recipient under the reverse charge mechanism; if the supplier avails Cenvat credit, the supplier charges service tax on the larger share of the gross amount and must declare that the balance of the service tax is payable by the service recipient.