Taxi Service

[MITSUI PRIME ADVANCED]

Dear Sir,

Thank's to Mr. Pradeep Khatri Ji

But at presently Service provider by  Taxi Operator issue a Invoice on 31.07.2012 ( Date show in Bill, for the Month of July 2012 ) but Provided on 05.08.2012 and our HR department Check  bills forwared to Accounts Dept. and Accoutns Dept checking bills than after post this entry in SAP as on 08.08.2012.

Please tell me about Service Tax payable for August 2012 up to 06.09.2012

POint of taxation is attrac this matter also.

or your sugguration.

Service Tax Add @ 12.36% in Invoice After 60% Abatment ( Tax on 40% ) 

Please provide your valuable suguation regaridng this matter.  in this case we have service tax not paybale by receiver . how many documents maintain by us.

Regards

Arjun Sachdeva

 

[YAGAY andSUN]

Point of taxation under reverse charge mechanism is date of payment to the service provider provided payment must happen within 6 months from the date of invoice otherewise point of taxation will be date of invoice.

Sl. No.

Description of a service

Explanation

Effective service tax rate applicable to recipient

Effective service tax rate to be charged by provider

Service recipient’s liability

Service provider’s liability

Effective date

9(a)	Renting of a motor vehicle designed to carry passengers on abated value	If service provider is not availing input credit, 9(a) is applicable otherwise 9(b) is applicable. If service provider does not charge service tax in invoice andhe is not registered under service tax i.e. ST No. not quoted in invoice, it can be assumed that it is not availing input credit.Covered: Hiring passenger cars, cabs, buses etc. Excluded: Radio taxi, metered cab, three wheeler, auto rickshaw, stage carrier, contract carriage and packaged tour, public transport not predominantly for tourism purpose e.g. Meru cabs, bus having contract permit hired for transportation of employees.	4.944%	-	100%	-	1-Jul-12
9(b)	Renting of a motor vehicle designed to carry passengers on non abated value		4.944%	7.416%	40%	60%	1-Jul-12

AI Summary

Point of taxation under reverse charge: payment date if within the prescribed period otherwise invoice date; RCM applies to taxi hiring. Under the Reverse Charge Mechanism for taxi-hiring services, the point of taxation is the payment date if payment occurs within the prescribed period after invoice; otherwise the invoice date governs. Hiring of passenger motor vehicles is treated either on an abated value when the provider does not avail input tax credit (recipient liable) or on a non abated value when input credit is availed (liability apportioned); classification depends on provider registration and whether service tax is charged on the invoice.