Gta appliability
Querist : Anonymous
One of our client(Pvt ltd) is doing construction activity.Whether company is liable to pay Service Tax on Carting Exp.under the category of GTA?
Carting exp are incurred for the bringing material like brick,sand,greet etc to Site.
Kindly guide me
Regards,
also whether the expense are incurred relating to purchase i.e. whether the company is paying the expenses to seller from whom the above mentioned goods are purchased or are incurred separately.
Querist : Anonymous
Consider following two situation for my Query?
1.)Supplier of above material issue two invoice.One for Material and second for Carting exp?
2.)Supplier of above material issue only single invoice for both material and carting.
their are 2 option
1) if the company pays the carting exp (freight) directly to the transporter then it is covered by GTA
2) if the company pays the freight to the seller and in turn he pays to transporter then the company is not covered by GTA
in 2nd situation it is not covered by GTA
Querist : Anonymous
Regds
CA JAYANT BOTHRA
Querist : Anonymous
In my case Supplier is doing business of supply of Sand, greet etc.Supplier also provide transportation and for this transportation it recover Carting Exp from our client.
Supplier is issuing invoice in two ways.
1.)difference invoice for Material and Carting.
2.)single invoice for both material and carting?
GTA is an agency which receives the goods and delivers it to the consignee.
Your case is not of GTA it is simply delivery of goods. Moreover, GTA is liable to issue consignment note and in your case you wont be getting consignment note.
However, if seprate invoice is issued for cating expenses then after 01.07.2012 any service provided for consideration is liable to service tax. Hence, service tax is leviable @ 12.36% of the invoice amount.
No reverse charge mechanism will apply in this case.
You can refer to Rule 4B of Service tax rules, 1994.
Regds
CA JAYANT BOTHRA
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