Transport

This query is : Open

CA Mehta Ankur N. (Querist)
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12 April 2013 Dear Sir,

If transporter charges 12.36% in it's bill, then also receiver have to pay 3.09% as per RCM ?

For Eg. Transport Charges Rs. 980, Service Tax on it is Rs. 122, Bill Amount Rs. 1102.

We have paid a total of Rs. 1102 for transport charges, then also as per reverse charge mechanism (RCM) we have to pay 25% of total Service tax ?

Transporter is having Service Tax no. which is for your reference only.

THanks in advance for your reply.

CA Neha Chauhan

CA Neha Chauhan (Expert)
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12 April 2013 As per my opinion you have not to pay service tax under reverse charge mechanism...

Regards,
Neha Chauhan

Message likes : 1 times

CA Mehta Ankur N.

CA Mehta Ankur N. (Querist)
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12 April 2013 No Ma'am i think 25% is to be paid by us as per RCM.

Thanks for reply.

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CA Neha Chauhan

CA Neha Chauhan (Expert)
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12 April 2013 Dont you think then it is a result in over burden on payer as he paid 12.36% to GTA and another 25% to gov....

Kindly give me reason on ur opinion.

CA Mehta Ankur N.

CA Mehta Ankur N. (Querist)
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13 April 2013 Madam Department dont see from others perspective, it is rule that on RCM you have to pay 25% so that we have to pay, for overburden problem we have to contact transporter that you should not charge service tax.

Have a Good MOrning....