Service Tax.

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

AI Summary

Clarification on Service Tax for Transport Services: Abatement Affects Tax Rate for Providers and Receivers. A query was raised regarding the service tax applicable to vehicle/transport services used by a company. It was clarified that with abatement, the service tax is 40% of 12.36%. Without abatement, the full rate of 12.36% applies. If the service is provided by entities other than companies, the service provider is exempt from paying service tax with abatement, while the service receiver pays 40% of 12.36%. If abatement is not claimed, the service provider pays 60% of 12.36%, and the receiver pays the remaining 40%.