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Regarding cenvat credit on service tax on rent a cab

Service Tax - Started By: - Rajeev Khulbe - Dated:- 26-8-2016 Last Replied Date:- 27-8-2016 - Good morning to all my great experts. Every time when I face any problem.then you all my great experts help me. But yesterday experience I want to share with you. Yesterday our financial excise and service tax audit.then in one point more argument between audit team and us .that point was cenvat credit on rent a cab.auditor told us that why are you taking cenvat credit on rent a cab then we told us as p .....

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vat credit on rent a cab. Thanks Rajiv Nainital - Reply By Rajagopalan Ranganathan - The Reply = Sir, Notification No. 30/2012-ST dated 20.6.2012 (Reverse Charge Notification) vide Sl. No. 7 (a) provides that in respect of services provided or agreed to be provided by way of renting of a motor vehicle designed to carry passengers on abated value to any person who is not engaged in the similar line of business the 100% of the service tax liability falls on the receiver of service. Again vide sl. .....

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f motorcab instead of any motor vehicle designed to carry passengers . since you are saying that you have paid service tax on 40% of the value charged by the service provider as Sl. No. 70 (a) of Notification No. 30/2012-ST you have to pay 100% of service tax liability as service receiver and you are entitled to take credit of such service tax paid by you. The abatement of 40% is applicable only to service receiver and not to service provider. When the service tax liability is shared by the serv .....

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ider. Even if you have paid tax of 100% on the abated value you are eligible to take credit. - Reply By KASTURI SETHI - The Reply = Sh.Rajiv Khulbe Ji, Notification No.8/14-ST dated 11.7.14 allows input service credit but not more than 40 % of ST. (Earlier Input service credit was not allowed under basic notification no.26/12-ST against serial no.9 Col. no.4). Whether to avail abatement or not, is option of Service Provider. Whether abatement is availed or not, Govt. would get ST on 40% of the v .....

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RECEIVER.WHEN HE USING MOTOR CAB ( OTHER THEN MOTOR VECHICLE)) AND DEPOSIT 40% SERVICE TAX ON ABTED VALUE THEN HE CLAIM CENVAT CREDIT. - Reply By KASTURI SETHI - The Reply = Sh.Rajiv Khulbe Ji, Notification No.8/14-ST dated 11.7.14 is not exclusively meant for Service Receiver as this notification imposes restrictions on SP to the extent that Cenvat Credit is not to be availed on inputs and capital goods by SP. Thus it relates to SP also. (ii) In case SP avails abatement (60%) in terms of Notif .....

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