Reverse charge mechanism

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 June 2015 Dear Expert

I am working in Manufacturing unit. the company purchases Bran (Chokhar) from the market and paying freight on it. my question is whether company is liable to pay @ 30% of service tax under GTA. or is it exempt on the basis of exemption given on Wheat.

CMA Y Srinu

CMA Y Srinu (Expert)
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29 June 2015 Hi,

If the company is paying transport charges to a Goods Transport Agency (GTA), then company is liable to pay service tax on 30% value (only when declaration for non availing cenvat credit by GTA is obtained). Else company is needs to pay service tax on 100% value.

CA. Ankit Chandrakar

CA. Ankit Chandrakar (Expert)
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29 June 2015 If bran qualifies as "agricultural produce", no need to pay service tax by anyone.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2015 Thanks Mr. Srinu and Ankit.

Chokar means cattle feed or we can say comes under the scope of animal husbandry. is it exempt from service tax on tranportation? please give your view on this topic and let me know the interpretation of chokar under ambit of service tax.