24 June 2013
Dear All, We are a manufacturing unit paying service tax in the capacity of service recipient. we are the recipient of transport services but bill is raised in the name of our dealer and dealer used to pay the bill to the transporter then the dealer raise the debit note as a reimbursement against our company. Who is the person responsible liable for service tax payment. we or the dealer ??
24 June 2013
1)under reverse charge service receiver is liable to discharge GTA service tax
2)person responsible to pay freight is considered as service receiver and he is liable to discharge service tax and can avail cenvat on payment of service tax..
3)So please do refer payment terms..as per payment terms if you are responsible for payment of freight you are considered as service receiver and you under obligation to discharge service tax.
4)service tax liability does not shift to your dealer if you are responsible for payment of service tax.
5)if your dealer paid freight means it is considered that he paid on behalf of you and the same was claiming by way of re-imbursement... because he just paid frieght on behalf of you..
5)so you need to discharge service tax on GTA service and not your dealer..as your case seems that you are responsible for payment of frieght
CAclubindia
