{"id":153,"date":"2015-07-11T06:22:44","date_gmt":"2015-07-11T06:22:44","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=153"},"modified":"2020-10-17T08:20:34","modified_gmt":"2020-10-17T08:20:34","slug":"hiring-of-motor-vehicles-service-tax","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/hiring-of-motor-vehicles-service-tax\/","title":{"rendered":"HIRING OF MOTOR VEHICLES &#8211; SERVICE TAX"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong><span style=\"text-decoration: underline;\"><span style=\"color: #0000ff; text-decoration: underline;\">HIRING OF MOTOR<\/span> <span style=\"color: #0000ff; text-decoration: underline;\">VEHICLES &#8211; SERVICE TAX<\/span><\/span><\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Renting\u00a0of\u00a0any motor vehicle \u2013 40% taxable<\/li>\n<li>Abatement of 60%.<\/li>\n<li>This is subject to the condition that input, input services\u00a0 and capital goods , used for providing the taxable services has not been taken under the provision of CENVAT Credit Rules.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">In the case Services of Transport of passenger have abatement of 60% Balance then 40% will be taxable.<br \/>\nIn the case Services of Transport of passenger have non &#8211; abatement then entire 100% will be taxable.<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #0000ff;\"><span style=\"color: #ff6600;\">What<\/span> <span style=\"color: #ff6600;\">is the difference between these two?<\/span><\/span><\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>If the Service Provider wants to put Tax only for the balance 40%, then he CAN NOT TAKE CENVAT INPUT CREDIT \u00a0as per the \u00a0<a href=\"http:\/\/www.taxmanagementindia.com\/Site-Map\/Cenvat%20Credit\/List_Rule.asp\">Cenvat Credit Rule, 2004<\/a><\/li>\n<li>But if the\u00a0Service Provider pays Tax on 100%, then he CAN \u00a0TAKE CENVAT INPUT CREDIT \u00a0as per the \u00a0<a href=\"http:\/\/www.taxmanagementindia.com\/Site-Map\/Cenvat%20Credit\/List_Rule.asp\">Cenvat Credit Rule, 2004<\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">If the Transporter takes\u00a0input credit (prefers for non-abatement)\u00a0then he has to levy\u00a0service tax on 60% Value\u00a0and the Service receiver (the company) has to pay\u00a0Service Tax on 40% Value.<\/p>\n<p style=\"text-align: justify;\">In case, if the Transporter DOES NOT takes\u00a0input credit (prefers for abatement)\u00a0then he will not charge\u00a0service tax in his bill\u00a0and the Service receiver (the company) has to pay\u00a0Service Tax on 100% Value with 40%.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\">In both the cases, the government will get the same amount of service tax.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"text-decoration: underline;\">Liability to pay service tax<\/span><\/p>\n<table width=\"637\">\n<tbody>\n<tr>\n<td width=\"235\"><span style=\"text-decoration: underline;\">Hiring of motor vehicle designed to carry passenger<\/span><\/td>\n<td width=\"204\"><span style=\"text-decoration: underline;\">Service recipient<\/span><\/td>\n<td width=\"198\"><span style=\"text-decoration: underline;\">Service provider<\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"235\">a] with abatement<\/td>\n<td width=\"204\">\u00a0\u00a0 100%<\/td>\n<td width=\"198\">nil<\/td>\n<\/tr>\n<tr>\n<td width=\"235\">b] without abatement<\/td>\n<td width=\"204\">\u00a0\u00a0 40%<\/td>\n<td width=\"198\">60%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong><span style=\"text-decoration: underline; color: #0000ff;\"><span style=\"color: #ff6600; text-decoration: underline;\">Changes in Partial<\/span><span style=\"color: #ff6600; text-decoration: underline;\"> Reverse Charge Mechanism Vide Notification No. 10\/2014-ST Dated 11-7-2014:-<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify;\">In case of Renting of motor vehicle where the service provider does not take abatement, the portion of Service tax payable by the service provider and service receiver has been modified as 50% each effective from October 1, 2014<\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact: <a href=\"mailto:info@caindelhiindia.com\">info@caindelhiindia.com<\/a>\u00a0or call at\u00a0011-233 \u00a0 433 33.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HIRING OF MOTOR VEHICLES &#8211; SERVICE TAX Renting\u00a0of\u00a0any motor vehicle \u2013 40% taxable Abatement of 60%. This is subject to the condition that input, input services\u00a0 and capital goods , used for providing the taxable services has not been taken under the provision of CENVAT Credit Rules. In the case Services of Transport of passenger &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[146],"tags":[555,566,502,501,569,546,561,541,537,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/153"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=153"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/153\/revisions"}],"predecessor-version":[{"id":1047,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/153\/revisions\/1047"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=153"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}