Sir,
I am working in a PSU. We hire light vehicles on regular monthly basis for use within our areas of operations. The contractors have registered themselves under 'Rent-a-Cab' category. In view of the Notn. Nos. 26/2012-ST and 30/2012-ST, I shall be grateful if it can be clarified whether they are covered under Sl. No. 7(a) [abated value] or 7(b) [non-abated value]? In case of 7(a), do we have to insist on proof of remittance of Service Tax by the contractor and then reimburse the same to him or liability rests with us to remit the Service Tax @ 40% to the Tax authorities suo motu without insisting on the contractor to provide proof of Service Tax payment?
