Nagative list service tax

bhaveshraj (Querist) 23 May 2013 This query is : Resolved
STAFF TRANSPORTATION EXP:

EXPENDITURE MADE FOR HIRING OF CAR,BUS FOR TRANSPORTATION OF EMPLOYEES WEATHER SERVICE TO BE PAID UNDER RENT A CAB OR NOT???

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KUMAR JAGADEESAN (Expert) 24 May 2013
Dear Shri.Bhaveshraj

As part of reverse charge mechanism even though you are only service receiver, you have o pay ST on 100% of the value of services (if the Service provider has availed abatement) or on the 40% of the value if the operator has not availed any abatement vide Notification 30/2012 ST dtd 20.06.12 as amended.

But if you are a manufacturer or service provider the credit of ST paid by you may be availed as Cenvat credit.

J.KUMAR
Advocate; Hyderabad