Simplification of partial reverse charge mechanism:

          • In renting of motor vehicle, portion of service tax payable by service provider and service receiver will be 50% each. This will come into effect from 1st of October 2014.

 

See:- Amendment in Notification No. 30/2012 - Notification under sub-section (2) of section 68 - Reverse Charge - Notification No. - 10/2014 Dated - July 11, 2014 (As amended)

Partial reverse charge: equal sharing of service tax liability between provider and receiver for motor vehicle rentals. Partial reverse charge for services is modified to require equal allocation of tax liability between supplier and recipient in renting of motor vehicle services, fixing the service tax burden to be shared equally between the service provider and the service receiver and implemented by amendment to the reverse charge notification.