09 July 2012
Earlier, in case if GTA is providing services to a specified person, then the tax is payable by the consignor or consignee whoever is liable to pay the freight. and in case of non-specified persons, i.e. individual and HUF, GTA is liable to pay the service tax.
My query is, after Notification No. 15/2012, is it so that GTA is not liable to pay tax at all?? Even in case if services is provided to non-specified persons i.e. individual and HUF???
09 July 2012
Under reverse charge mechanism, the GTA service is to be paid by the service recipient only. GTA need not pay even if it is meant for non-specified persons. Think it over the following case. GTA is an individual, consignor is an individual or firm and consignee is also an individual or Firm and the freight amount is 1,20,000/=
09 July 2012
Sir, as per my knowledge, in this case then, the GTA will bear the tax even if he is an individual because the condition of being a specified person lies on the consignor or consignee whoever is paying the freight. But, since the consignor and the consignee both are individual and both are non-specified, the tax burden lies on GTA.
10 July 2012
Good thinking. But, the GTA, being an individual, he will not come under the purview of tax net if he declares in the LR/Waybill by affixing a rubber stamp that "service tax will be paid by consignor/consignee" as the case may be. Because under reverse charge mechanism, the liability is shifted 100% to SR.
11 July 2012
Sir, what if GTA is a company (specified person) and providing services to individual (non-specified person)??? Now in this case, is the individual, being a non-specified person liable to pay the tax?? Whose liability will it be? GTA (SP) or individual (SR)
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