Service Tax issue
This query is : Resolved
10 December 2010
I am working in a I.T. company (e.s.t in 2009) the company is engage in trading activity only. We are not providing any kinds of services other than repairs which come under warranty (3 Years from date of sales not cover under service tax).
We have the VAT registration number & we are charging Sales tax on each and every sales transaction.
As we are not a service provider & we don’t have any Service Tax registration number but we are getting transport services from transporter (total services in the year 2009-2010 Rs.27,03,279/- & 2008-09 Rs.1,46,855/-) out of which Rs.21,06,980/-(F.Y.2009-10) inv not contain any service tax amount.
As we don’t have any service tax registration number that’s why we r not claiming any service tax refund which we paid to vender who provide a services with service tax like repairs & maintain, postage & courier, rent, telephone exp, audit fees…etc.
My question is ….
1) We are liable to pay any service tax on the transportation charges which we are getting by transporter?
2) We require service tax registration number (if yes which will be the service tax category)?
3) Can we claim setoff on the amount which we are paying for mention services?
4) The transporter have registration number but they are passing service tax on us this is the correct transaction?
We have the VAT registration number & we are charging Sales tax on each and every sales transaction.
As we are not a service provider & we don’t have any Service Tax registration number but we are getting transport services from transporter (total services in the year 2009-2010 Rs.27,03,279/- & 2008-09 Rs.1,46,855/-) out of which Rs.21,06,980/-(F.Y.2009-10) inv not contain any service tax amount.
As we don’t have any service tax registration number that’s why we r not claiming any service tax refund which we paid to vender who provide a services with service tax like repairs & maintain, postage & courier, rent, telephone exp, audit fees…etc.
My question is ….
1) We are liable to pay any service tax on the transportation charges which we are getting by transporter?
2) We require service tax registration number (if yes which will be the service tax category)?
3) Can we claim setoff on the amount which we are paying for mention services?
4) The transporter have registration number but they are passing service tax on us this is the correct transaction?
12 December 2010
The liability for GTA services doe snot have any exemption limit.
See article on differecne b/n GTA/ GTO in artcile section to understand further.
You maybe liable as recepient of GTA services. You require to pay ST on 25% of the GTA services. Credit wouldbe available if you are using ithe GTA n provding taxable services.
See article on differecne b/n GTA/ GTO in artcile section to understand further.
You maybe liable as recepient of GTA services. You require to pay ST on 25% of the GTA services. Credit wouldbe available if you are using ithe GTA n provding taxable services.
15 December 2010
As per the provisions of the Finance Act 1994 all recipients are liable for services as Goods Transport Agency. GTA has no basic exemption. Registered dealers are entitled to 75% abatement of the payments on goods transport. Input credit is available if the assessee is providing any other taxable service.
16 December 2010
please sir ans to my 2nd question
16 December 2010
Dear Santosh,
For registration the categories are Goods Transport Organization / Goods Tranasport Agency.
For service recipients under this category there is no basic exemption and hence the recipient of services of any Goods Transport Agency has to get himself registered.
Necessary online filing of ST - 1 and follow up with hard copy with the Range Superintendent is a must. In the absence of such registration the assessee may be treated as a defaulter with the attendant penalties.
To qualify as a GTA / GTO the goods must be recieved by the receiver by Road transport.
I hope this answers your 2nd query.
For registration the categories are Goods Transport Organization / Goods Tranasport Agency.
For service recipients under this category there is no basic exemption and hence the recipient of services of any Goods Transport Agency has to get himself registered.
Necessary online filing of ST - 1 and follow up with hard copy with the Range Superintendent is a must. In the absence of such registration the assessee may be treated as a defaulter with the attendant penalties.
To qualify as a GTA / GTO the goods must be recieved by the receiver by Road transport.
I hope this answers your 2nd query.
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
- Should I include march foreign salary received in April in my income for FY 2023-24?
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Tax on capital gains revoked us 54f
- Refund of AY 22-23
- Inventory of finished goods
- TDR receipts for agreement holder
- Applicability of Ind As to associate of associate
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Confusion around Form 26QB fields
- ERROR WHILE GENERATING .XML FILE FOR AY 2018-19
- Vivad se vishwas scheme 2024 new
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- 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
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
Trending Online Classes
CAclubindia
