TaxTMI 
TaxTMI 
TaxTMI 
On what amount a car provider will charge service tax -
1. On Full amount
2. On abatment value
3. Do not charge as paid by service receiver.
Reverse Charge rent a car
Rajeev Kedia
Clarification on Service Tax: Abated Rentals See Receiver Pay 100%; Non-Abated Split 60/40 Between Provider and Receiver. A query was raised regarding the amount on which a car provider should charge service tax when renting a vehicle. The options considered were charging on the full amount, on the abated value, or not charging as the service receiver pays. The response clarified that for renting a motor vehicle on abated value, the service provider pays no service tax, while the receiver pays 100%. For non-abated value, the service provider pays 60% and the receiver pays 40%. (AI Summary)