[aaykarbhavan] Re: Reverse charges of Service Tax on car Hiring

There two circumstances as mentioned below:

Situation 1. Hiring of motor vehicles to carry passengers on abated value (Where service provider – individual/Proprietorship/HUF/Partnership and service recipient – Body Corporate )	Nil	100%
Situation 2. Hiring of motor vehicles to carry passengers on non-abated value (Where service provider – individual/Proprietorship/HUF/Partnership and service recipient – Body Corporate )	60%	40%

under both situation- Company has to pay tax only on 40% of consideration @12.36%. in your case- Rs.40000@12.36%.

situation 1- when service provider is taking abatement i.e., not taking cenvat but like to pay at exempted value i.e., service receipient is liable to pay. (see notification no 26-st dt 20.07.2012

situation 2 - when service provider is not taking abatement (no cenvat) in that case both liable as per percentage.

See circular no 30

--- In aaykarbhavan@yahoogroups.com, Dipak Shah wrote:
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> ________________________________
> From: ANIL AGRAWAL agrawalaka56@...
> To: AAykarbhawan aaykarbhavan@yahoogroups.com; AMRESH VASHISHT amresh_vashisht@...; "agrawalaka@..." agrawalaka@...; ANIL AGRAWAL agrawalkanil@...; CA ranjit echange-professionally@googlegroups.com; "carupakkedia@..." carupakkedia@...; "Chartered_accountant-subscribe@yahoogroups.com" Chartered_accountant-subscribe@yahoogroups.com; "djshah1944@..." djshah1944@...; "echange-professionally+unsubscribe@googlegroups.com" > Sent: Wednesday, 22 May 2013 7:44 AM
> Subject: Reverse charges of Service Tax on car Hiring
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> Dear Friends.
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> A company hires passenger car through out the year.
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> Pays Rs. 100000.00
> Now ser taxable after abetment is 40%
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> Hence, ST to be paid on  40000.00
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> Now under reverse charge machanism  Company to Pay only 20000.00
> and Service provider to pay 20000.00
>
> Kindly confirm if my contention is correct
>
> CA Anil Agrawal
> 9431881950
> agrawalaka@...
>

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