Service tax on gta
This query is : Resolved
03 August 2012
Dear Sir/Madam,
Are we supposed to pay Service tax on GTA on transporters bill as we are not registered under GTA category. Whereas when we are charging transportation from Customers we charge Service tax under BSS Category. Could you please assist me in this regard. Your suggestions will be really helpfull.
Thanks & Regards,
James. M. Chacko
James_nu1@yahoo.co.in
9999568262
Are we supposed to pay Service tax on GTA on transporters bill as we are not registered under GTA category. Whereas when we are charging transportation from Customers we charge Service tax under BSS Category. Could you please assist me in this regard. Your suggestions will be really helpfull.
Thanks & Regards,
James. M. Chacko
James_nu1@yahoo.co.in
9999568262
04 August 2012
What I understand your query is as below:
You are arranging a transport System on behalf of your customer for delivering your output at customer premises, in turn which your customer is reimbursing against a BSS Invoice, raised by you.
If it is so, then instead of paying to the transporter as well as paying Service tax on that amount as a Service Receiver under reverse Charge mechanism and again raising an invoice under BSS, and pay Service Tax on BSS invoice as a service provider accordingly, I have following Ideas:
1) No need to raise an invoice under BSS for this. Ask transporter to print “A/c ABC co. (your customer)” and you endorse the invoice in the name of your customer. Customer will directly pay to the transporter. By this your customer can take credit on that Invoice as it will be input services for him.
2) Another thing you can do, you can add this freight charges to the bottom of the invoices as “Ad-hoc charges for transport”. No need to show break-up of service tax on the invoice. Total Amount including service tax as you paid to the transporter, you charge by this technique. But there may be a problem if Departmental Auditors ask, to include the whole freight /transport amount to your transaction value and pay Excise duty on that. On that case you can enter into a contract with your customer on FOR basis, and quote for the item accordingly. Though it is wholly on company’s discretion.
Sincerely,
CMA. PRALAY Chakraborty
(Cost & Management Accountant)
You are arranging a transport System on behalf of your customer for delivering your output at customer premises, in turn which your customer is reimbursing against a BSS Invoice, raised by you.
If it is so, then instead of paying to the transporter as well as paying Service tax on that amount as a Service Receiver under reverse Charge mechanism and again raising an invoice under BSS, and pay Service Tax on BSS invoice as a service provider accordingly, I have following Ideas:
1) No need to raise an invoice under BSS for this. Ask transporter to print “A/c ABC co. (your customer)” and you endorse the invoice in the name of your customer. Customer will directly pay to the transporter. By this your customer can take credit on that Invoice as it will be input services for him.
2) Another thing you can do, you can add this freight charges to the bottom of the invoices as “Ad-hoc charges for transport”. No need to show break-up of service tax on the invoice. Total Amount including service tax as you paid to the transporter, you charge by this technique. But there may be a problem if Departmental Auditors ask, to include the whole freight /transport amount to your transaction value and pay Excise duty on that. On that case you can enter into a contract with your customer on FOR basis, and quote for the item accordingly. Though it is wholly on company’s discretion.
Sincerely,
CMA. PRALAY Chakraborty
(Cost & Management Accountant)
04 August 2012
Service tax is to be charged Transport of Goods by ROAD (it is used as GTA)
and not under BSS
Hope u are clear with the notification on the abatement and exemption
a) 75% abatement
b) exemption for Rs.750/-
c) exemption for fruits and vegetable.
But from 1st July '12 reverse charge mechanism is applicable
and not under BSS
Hope u are clear with the notification on the abatement and exemption
a) 75% abatement
b) exemption for Rs.750/-
c) exemption for fruits and vegetable.
But from 1st July '12 reverse charge mechanism is applicable
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