Gta service

This query is : Resolved

mahender (Querist)
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14 August 2013 We are registered as output service provider.

We are paying freight bills on account and not bill wise to transport operators.

1) How to compute the point of taxation & discharge the service tax liability under reverse charge, if the payment not made within six months from the date of invoice, in the above situation?

2) whether we can claim cenvat credit on outward freight.

Ganeshbabu K

Ganeshbabu K (Expert)
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14 August 2013 point of taxation is when you have made payment to GTA...

so maintain a MIS in some excel format which shows all GTA payments in month and pay tax on GTA accordingly with in 5th/6th of next month

yes cenvat credit can be claimed on payment of GTA

CA Suresh Jain

CA Suresh Jain (Expert)
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15 August 2013 Point of taxation is as under :-

RULE 7. Determination of point of taxation in case of specified services or persons.— Notwithstanding anything contained in these rules, the point of taxation in respect of the persons required to pay tax as recipients of service under the rules made in this regard in respect of services notified under sub-section (2) of section 68 of the Act, shall be the date on which payment is made :

Provided that, where the payment is not made within a period of six months of the date of invoice, the point of taxation shall be determined as if this rule does not exist :

Provided further that in case of “associated enterprises”, where the person providing the service is located outside India, the point of taxation shall be the date of debit in the books of account of the person receiving the service or date of making the payment whichever is earlier.

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CA Suresh Jain

CA Suresh Jain (Expert)
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16 August 2013 yes you can claim CENVAT