Service tax on gta
This query is : Open
08 August 2012
an individual paying freight on transportation of goods, is he liable to pay service tax or gta has to pay? all tax audit assesses (individual) are liable to pay service tax on transportation of goods or not?
09 August 2012
The Notification Number 30/2012-ST has been issued which specifies the service on which reverse charge is applicable.
The applicable service tax is payable in full by the recipient of the service where service is provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
(c) any co-operative society established by or under any law;
(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons;
It is there for clear that where the individual is not a proprietary concern falling under clause (a) or (d) above is not liable to pay service tax and hence the GTA has to pay the tax.
It may further be noted that liability of service tax on goods transport is only in the case where it is by a GTA or courier
The applicable service tax is payable in full by the recipient of the service where service is provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
(c) any co-operative society established by or under any law;
(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons;
It is there for clear that where the individual is not a proprietary concern falling under clause (a) or (d) above is not liable to pay service tax and hence the GTA has to pay the tax.
It may further be noted that liability of service tax on goods transport is only in the case where it is by a GTA or courier
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09 August 2012
In my opinion, all the (a) to (f) categories ,as explained by the expert, alone are liable to pay service tax after availing abatement of 75% on the freight amount. GTA has no liability at all unless the entity is company registered under the companies act. If GTA is an individual he has no liability even if the service receiver is individual.
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09 August 2012
The individuals who were already paying service tax on the GR received(transportation of goods by road) , now as per the new amendment they are not liable to pay service tax , but still they are receiving GR on which transporters have not paid service tax , what should individuals do now ? what procedure should they follow after 01.07.2012?
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