29 September 2014
PLEASE GUIDE IN CASE OF REVERSE CHARGE MECHANISM IN CASE OF GTA. WHAT IS THE SERVICE TAX % OF PAYABLE BY A MANUFACTURE WHO ARE USE GTA SERVICE FOR TANSPORATION OF GOODS ?
01 October 2014
Reverse charge applicable on GTA services if such services are received by specified persons as stated in Rule 2(1)(d) of ST Rules and Notif No 30/2012-ST did 20/06/2012.
In GTA 75% abatement is eligible and thus service recipient need to pay service tax on 25% of amount charged. By this budget the requirement of certificate regarding non claim of Cenvat by GTA service provider for claiming abatement has also been dispensed with.
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