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.

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 payable or not , becasue service tax provider fully amount deposit with 4.944%

Please provide your valuable advice

Regards

 

Arjun Sachdeva

[JAMES PG]

If the service is provided by an individual or proprietory concern and not availed Cenvat credit ( not being a limited Company) they are not supposed to charge Service Tax. It is a charge on the service recipient and it is required to be paid irrespective of the fact that service provider has discharged ST

AI Summary

Service tax liability: recipient remains liable to pay tax despite provider deposit, irrespective of invoice dating. Issue: taxi service invoice dated 31.07.2012 for service on 05.08.2012, charged service tax after a 60% abatement; provider reports depositing tax. Advisory: proprietorships not availing input credit generally should not charge service tax; service tax liability rests with the service recipient, so the recipient must pay tax irrespective of provider deposit, with invoice and accounting dates not affecting that obligation.