TaxTMI 
TaxTMI 
What is the ST for Vehicle/Transport for service used by company
Service Tax.
08 Aug 2012 
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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. (AI Summary)
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. (AI Summary)