Service tax on goods transport agency

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2014 Factory Which paying Freight Charges to Transport Agency, Is it necessary to Register Under Service Tax ?

Sandeep Dharar

Sandeep Dharar (Expert)
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26 February 2014 Why should Factory register to ST. It is the Transport agency who will charge ST on their invoice & will pay to the govt. so the GTA should b registered & not the factory.

But if there is any case where the factory is collecting the ST then only the Factory must register themselves.

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2014 I heard that,According to Service Tax Reverse Mechanism the service recipient will pay the service tax. In this case what is your opinion ?

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Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2014 I heard that,According to Service Tax Reverse Mechanism the service recipient will pay the service tax. In this case what is your opinion ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 Where freight is paid, inter alia, by a factory reverse charge mechanism is applicable.

Accordingly the service recipient (factory) is liable to pay service tax under reverse charge.

The factory is also required to get itself registered under service tax.

The factory is also required to file service tax return.