Gta
This query is : Resolved
06 April 2013
I registered service tax on GTA and i collected the service tax for parties ,but one of client(i.e. factory register service tax ) in is order clearly mentioned the not collect the service tax and give me only bill without Service Tax. what can i do , i already register and how to fill the returns the ST-3 , any provision is there please tell me .
06 April 2013
Under GTA service tax is to be paid by service receiver(specified persons).
Factory registered under factories act is specified person and required to pay service tax under reverse charge.
You need not pay or show the value of service tax again.
See Sl. No.2 of Notification 30/2012-ST
http://www.servicetax.gov.in/notifications/notfns-2012/st30-2012.htm
Factory registered under factories act is specified person and required to pay service tax under reverse charge.
You need not pay or show the value of service tax again.
See Sl. No.2 of Notification 30/2012-ST
http://www.servicetax.gov.in/notifications/notfns-2012/st30-2012.htm
Message likes :
1 times
08 April 2013
thank you sir and tell me how to fill the return if we total turnover is 250 out of 100 Taxable turnover and also applied (100 abatement 75% and taxtalbe is 25% )service tax is 3.09. and remaining 150 turnover service provided to factory . how to showing the returns please tell me
27 July 2024
When dealing with Service Tax, particularly under the Goods Transport Agency (GTA) services, and facing a situation where a client has requested not to charge Service Tax, it’s essential to handle the scenario correctly in your ST-3 return. Here’s a step-by-step guide to managing this situation:
### **1. Understanding the Situation**
You are registered under Service Tax for GTA services and typically charge Service Tax. However, one of your clients has requested that you do not charge Service Tax and provide an invoice without Service Tax.
### **2. Legal Framework**
Under Service Tax, if you are providing GTA services and are registered, you are required to charge Service Tax unless specifically exempt or if the service falls under reverse charge mechanism or other provisions where Service Tax may not be applicable.
### **3. Handling the Client Request**
#### **Client Request Not to Charge Service Tax:**
- **If the client is a factory registered under Service Tax**, they might be exempt from paying Service Tax on GTA services under certain conditions (e.g., if the service is provided to a factory where the exemption applies).
- **Invoice Issued Without Service Tax**: If you have issued an invoice without Service Tax as per the client’s request, you must ensure that this is in compliance with the applicable provisions.
### **4. Filling ST-3 Return**
#### **General Instructions for ST-3 Filing:**
1. **Total Turnover Reporting**:
- **Total Turnover**: ₹250 (inclusive of all services provided).
2. **Taxable Turnover Breakdown**:
- **Taxable Turnover**: ₹100 (including service tax applicable on this portion).
- **Abatement**: 75% (for GTA services).
- **Taxable Value After Abatement**: ₹25 (₹100 * (1 - 75%)).
3. **Calculation of Service Tax**:
- **Service Tax**: 3.09 (as per your calculation).
4. **Non-Taxable Turnover**:
- **Turnover**: ₹150 (services provided to the factory).
#### **Filling the ST-3 Return**:
- **Part A – Gross Total**:
- **Enter the total turnover** (₹250) in the appropriate column.
- **Part B – Details of Service Tax Paid**:
- **Show Taxable Turnover**: Enter the taxable turnover in the corresponding section. For the ₹100 turnover, apply the abatement and service tax.
- **Part C – Service Tax Payable**:
- **Taxable Turnover with Abatement**: Enter ₹25 (after abatement).
- **Service Tax Amount**: Enter the calculated service tax amount (₹3.09) in the column for service tax payable.
- **Part D – Adjustments**:
- **Adjustments**: If you have not collected Service Tax from the client but still need to show it in the return, you should adjust it accordingly. However, ensure this is in line with the legal provisions.
- **For Service Provided to Factory**:
- **Report**: Since this amount is exempt or not subject to Service Tax based on client’s request, it should not be included in the Service Tax payable. Ensure this is correctly shown as non-taxable or exempt turnover in the ST-3 return.
### **5. Ensuring Compliance**
- **Document the Reason**: Keep proper documentation of why Service Tax was not charged (such as a letter or email from the client stating their registration and exemption claim).
- **Consultation**: It’s always a good idea to consult a tax advisor or legal expert to ensure compliance and proper handling of exemptions or special cases.
### **6. Summary**
- **Report Taxable Turnover**: ₹100 with the applicable abatement and service tax.
- **Report Non-Taxable Turnover**: ₹150 as per client’s request.
- **Adjust and Reconcile**: Ensure correct reporting and reconciliation in the ST-3 return.
By following these guidelines, you can properly handle the situation in your ST-3 return and ensure compliance with Service Tax regulations. If you have any uncertainties, professional advice can help clarify the exact requirements.
### **1. Understanding the Situation**
You are registered under Service Tax for GTA services and typically charge Service Tax. However, one of your clients has requested that you do not charge Service Tax and provide an invoice without Service Tax.
### **2. Legal Framework**
Under Service Tax, if you are providing GTA services and are registered, you are required to charge Service Tax unless specifically exempt or if the service falls under reverse charge mechanism or other provisions where Service Tax may not be applicable.
### **3. Handling the Client Request**
#### **Client Request Not to Charge Service Tax:**
- **If the client is a factory registered under Service Tax**, they might be exempt from paying Service Tax on GTA services under certain conditions (e.g., if the service is provided to a factory where the exemption applies).
- **Invoice Issued Without Service Tax**: If you have issued an invoice without Service Tax as per the client’s request, you must ensure that this is in compliance with the applicable provisions.
### **4. Filling ST-3 Return**
#### **General Instructions for ST-3 Filing:**
1. **Total Turnover Reporting**:
- **Total Turnover**: ₹250 (inclusive of all services provided).
2. **Taxable Turnover Breakdown**:
- **Taxable Turnover**: ₹100 (including service tax applicable on this portion).
- **Abatement**: 75% (for GTA services).
- **Taxable Value After Abatement**: ₹25 (₹100 * (1 - 75%)).
3. **Calculation of Service Tax**:
- **Service Tax**: 3.09 (as per your calculation).
4. **Non-Taxable Turnover**:
- **Turnover**: ₹150 (services provided to the factory).
#### **Filling the ST-3 Return**:
- **Part A – Gross Total**:
- **Enter the total turnover** (₹250) in the appropriate column.
- **Part B – Details of Service Tax Paid**:
- **Show Taxable Turnover**: Enter the taxable turnover in the corresponding section. For the ₹100 turnover, apply the abatement and service tax.
- **Part C – Service Tax Payable**:
- **Taxable Turnover with Abatement**: Enter ₹25 (after abatement).
- **Service Tax Amount**: Enter the calculated service tax amount (₹3.09) in the column for service tax payable.
- **Part D – Adjustments**:
- **Adjustments**: If you have not collected Service Tax from the client but still need to show it in the return, you should adjust it accordingly. However, ensure this is in line with the legal provisions.
- **For Service Provided to Factory**:
- **Report**: Since this amount is exempt or not subject to Service Tax based on client’s request, it should not be included in the Service Tax payable. Ensure this is correctly shown as non-taxable or exempt turnover in the ST-3 return.
### **5. Ensuring Compliance**
- **Document the Reason**: Keep proper documentation of why Service Tax was not charged (such as a letter or email from the client stating their registration and exemption claim).
- **Consultation**: It’s always a good idea to consult a tax advisor or legal expert to ensure compliance and proper handling of exemptions or special cases.
### **6. Summary**
- **Report Taxable Turnover**: ₹100 with the applicable abatement and service tax.
- **Report Non-Taxable Turnover**: ₹150 as per client’s request.
- **Adjust and Reconcile**: Ensure correct reporting and reconciliation in the ST-3 return.
By following these guidelines, you can properly handle the situation in your ST-3 return and ensure compliance with Service Tax regulations. If you have any uncertainties, professional advice can help clarify the exact requirements.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Inventory of finished goods
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- RCM INVOICING FROM NOV-2024
- GST Regis.
- Disallowance of Section 43B(h) to sez units
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Tds on building rent monthly
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
