15 November 2013
Our co.is receiving transport services from A Ltd.say for Rs.1000 in this case co.is supposed to pay service tax under reverse charge mechanism and this Freight amount is revoered from B Ltd.our customer as Rs.1200 so on which amiut co.is supposed to pay service tax on Rs.1000 or rs.1200
15 November 2013
The Service Tax is supposed be paid by the service recipient. GTA with proper consignment note is received by A Ltd. A Ltd. will pay service tax on the bill received from GTA Rs.1000/-. The freight recovered from B Ltd. will not be treated as GTA receipt as no consignment note was issued. If the service is taxable then it will be under the head business support service,
19 November 2013
Sorry - misread your company as A Ltd. Your company will pay GTA as service recipient and the freight recovered from the other company B Ltd. will not be treated as GTA receipt.
CAclubindia
