Rcm area
This query is : Resolved
12 July 2014
Dear Sir/ Madam,
I am providing briefly about the fact of the case:
Our client (Partnership firm) receive the invoice from the GTA (Goods Transport Agency). GTE Invoice shows the following information:
Freight paid Rs 15,000/-
Other charges Rs 5,000/-
Gross Total Rs 20,000/-
Service tax Rs 618
(Assume abatement taken)
Total of the bill 20,618
My client paid the full amount of Rs.20,618/-. The service tax liability will by our client as per the RCM. But my client paid the full amount along with the Service tax liability. I have the following question in my mind:
1)As per the RCM any transaction between specified person the liabiality shall be borne by the Service Receiver not by the provider. My client paid the service tax amount to Service provider. I do not what I have to do!
2)The limit of Rs Ten lakh is not applicable for the RCM as per the Notification number 33/2012- Service tax. Our client required to Service tax registration or not because our client is paying the Service tax amount to GTA.
Please help me because I have to take Decision.
I am providing briefly about the fact of the case:
Our client (Partnership firm) receive the invoice from the GTA (Goods Transport Agency). GTE Invoice shows the following information:
Freight paid Rs 15,000/-
Other charges Rs 5,000/-
Gross Total Rs 20,000/-
Service tax Rs 618
(Assume abatement taken)
Total of the bill 20,618
My client paid the full amount of Rs.20,618/-. The service tax liability will by our client as per the RCM. But my client paid the full amount along with the Service tax liability. I have the following question in my mind:
1)As per the RCM any transaction between specified person the liabiality shall be borne by the Service Receiver not by the provider. My client paid the service tax amount to Service provider. I do not what I have to do!
2)The limit of Rs Ten lakh is not applicable for the RCM as per the Notification number 33/2012- Service tax. Our client required to Service tax registration or not because our client is paying the Service tax amount to GTA.
Please help me because I have to take Decision.
12 July 2014
Firstly,our client haspaid the service tax to the service provider.Ans i assume that the service provider shall have paid the same to government.
As per a recent case law of
Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - T IOL – 126 – CESTAT - MUM]
It is held by the Hon’ble CESTAT that once the amount of Service Tax is accepted by the Revenue from the provider of GTA service, it cannot be demanded again from the recipient of the GTA service.
Therefore tha sam shall apply to your case and service tax shall not be required to be paid by the partnership firm again.
2.As per my view as the liablity under the law in case of rcm is of service receiver,your client should get registered under serice tax and pay the service tax to the government instead of service provider for all future transactions.
Regards
As per a recent case law of
Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - T IOL – 126 – CESTAT - MUM]
It is held by the Hon’ble CESTAT that once the amount of Service Tax is accepted by the Revenue from the provider of GTA service, it cannot be demanded again from the recipient of the GTA service.
Therefore tha sam shall apply to your case and service tax shall not be required to be paid by the partnership firm again.
2.As per my view as the liablity under the law in case of rcm is of service receiver,your client should get registered under serice tax and pay the service tax to the government instead of service provider for all future transactions.
Regards
15 July 2014
Thanks a lot Sir. I am happy with the your Solution.
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