Service tax on gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2012 i want some clarification in case of a service tax return filing by GTA

GTA has received some amount on which Service tax is paid by receipient and we have deposied the same

in other cases the service tax is deposited by receipient himself

how the amount of receipt will be shown in service tax rerurn

please clarify by the example given below
suppose the GTA has raised invoice of Rs. 100/-, on Rs. 60 he has received Rs.1.54 as service tax (60*25% x 10.30%) and on balance 40 service tax has been deposited by receipeint

now what amount to be shown in service tax return and how it will shown

Ki$hor B

Ki$hor B (Expert)
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25 April 2012 whoever is paying freight is liable to pay service tax too.

ST paid on inward transportation and outward transportation up to the place of removal is input service eligible for cenvat.

Consignee can take cenvat cr. for ST paid on frieght incurred for removing the goods from the place other than place of manufacture.

Ki$hor B

Ki$hor B (Expert)
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25 April 2012 I hope you are able to apply the concept to the Q that you have. Let me know if you need further info.

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Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2012 I think u have not got my query i want to know about how to file the return for service tax in case of GTA and what amount will be shown in service tax return. the amount on which service tax is not received will it be mentioned in service tax return

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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26 April 2012 In return only such amount will be shown on which GTA has paid servic tax i.e. in your example gross receipts of Rs. 60 and accordingly figures for service tax shall be calculted.

I am also agreed with Mr. Kishore, He is right in his view. Under service tax law in respect of GTA where service receiver is a company or other specified person, then it is compulsory that only service receiver who is paying freight will have to pay service tax, reverse charge mechanism is not optional but compulsory

In your case It is not clear how an amount of invoice can be bifurcated to conclude that ST on Rs. 60 will be paid by GTA and ST on balance amount by Rs. 40. I think there is need to check facts and then apply correct legal position in future. At present you can file return as advised above.

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Ki$hor B

Ki$hor B (Expert)
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26 April 2012 Even I agree with Nikhil bhai and would suggest to consider only that portion of freight on which you've received the ST in your return.
You may prepare the supporting workings that might be useful in case of an inquiry from the deptt.
Is the amount of Rs 100 in your example post abatement?

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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2012 Thanku very much to both of u & Nikhil u r right that we cannot bifurcate the receipt but in some case where the receipeint has not deducted the service tax amount then we r depositing the service tax