05 January 2016
IN CASE TRANSPORT SERVICES ARE PROVIDED TO A FIRM...WHETHER FIRM IS LIABLE TO DEDUCT TDS AS BILL AMT IS AROUND 250000/-...ALSO WHAT WILL BE THE SERVICE TAX LIABILITY ON PART OF FIRM AS WILL BE COVERED UNDER REVERSE CHARGE MECHANISM
05 January 2016
Dear Priyanka Firm is required to deduct TDS if, Effective June 1, 2015, If transporter is not owning more than 10 goods carriage at any time during the previous year, then we, as payers (Tax deductors) have to obtain a declaration from transporter along with his copy of PAN before credit or payment to transporter, whichever is earlier. If the transporter is owning more than 10 goods carriage at any time during the year, then we, as payers are liable to deduct TDS at the time of paying charges to goods transporter at the rate of 1% or 2% as the case may be.
05 January 2016
Dear Priyanka In case of GTA service if service recipient the firm then the firm is liable to pay service tax @ 4.35%( including swach bharat cess{SBC}) It does not matter whether the firm is registered or not. The liability of firm would be : 250000* 14%*30% = Rs. 10500/-( Service tax) 250000*0.5%*30% = Rs.375/- (SBC)
CAclubindia
