Service Tax.

[Guest]

What is the ST for Vehicle/Transport for service used by company

[JAMES PG]

With abatement, it is 40% of 12.36% and without abatement

[JAMES PG]

With abatement, it is 40% of 12.36% and without abatement it is 12.36 % . When the service is provided by other than Companies, service provider shall not be required to pay ST in case of abatement and Service receiver is required to pay 40% of 12.36% . In case abatement is not claimed ( ie Cenvat credit availed), 60% of 12.36% to be paid by provider and balance 40% by the receiver

 

AI Summary

Abatement for transport service shifts primary tax liability to the recipient when abatement is claimed, provider liable only when no abatement. With abatement for transport services the taxable base is reduced and the service receiver bears the tax on the abated value; where providers are non-company entities and abatement is claimed the provider need not pay service tax. If abatement is not claimed (i.e., Cenvat credit availed), tax liability is apportioned between provider and receiver, with the provider responsible for the larger share and the receiver for the balance.