Some queries related to Service Tax

[Mridul Sethi]

1 Can we take the credit of above input services, any supportive notfn./circular?. 2 Can we pay S.Tax of notification no 30/2012, thru input service tax credit 3 What is the meaning of abatement / non abatement in notification no 30/2012, for choosing one option out of two. 4 service tax on godown rent charged by transporter, whose liability to pay service tax, as the service tax not charged on godown rent bill.

Regards,

Mridul Sethi

[YAGAY andSUN]

Replies to your queries:-

1. Cenvat credit will be available as per the provisions of CENVAT credit Rules, 2004 as amended time to time.
2. No, Service Tax under Partial Reverse mechanism would not be adjusted against the credit account.
3. Answer submitted earlier, for further clarification please check the appended chart:-

 

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%	7.4

4. It will depend under which category of taxable service the service provider is registered whether in GTA or Renting of Immovable property.  Anyhow, the ultimate burden will be on service recipient.

AI Summary

Cenvat credit availability governs input service claims while partial reverse charge cannot be adjusted against credit. Availability of Cenvat credit for input services is governed by the CENVAT Credit Rules, 2004; under the partial reverse charge mechanism, service tax payable by the recipient cannot be adjusted against the credit account. For renting of motor vehicles, abatement applies if the provider is not availing input credit; non-abated value applies where input credit is availed. Classification of godown rent charged by a transporter depends on the provider's registered service category, with ultimate burden on the service recipient.