Service tax on gta

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 April 2015 Dear expert
please tell me if i pay 1000 freight will i have to pay 30% ST under reverse charge or not.....

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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11 April 2015 plz tell us that fright payable to whom and by whom

CA Pavan Talreja

CA Pavan Talreja (Expert)
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11 April 2015 Service Tax Rate is 12.36%, why would you pay at 30%?

For GTA (where consignment note is issued), reverse charge mechanism applies to all except Individuals / Proprietors / HUF and ST to be paid at 12.36%.

Please Note - It applies to Partnership Firms whether registered or not.

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CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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11 April 2015 GTA Liability is 30 % now dear

Previously it was 25 % on ST

Correct me if m wrong

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 April 2015 You are right. If the freight of Rs. 1000 is paid for engaging full truck then no service tax payable under reverse charge.

CA Pavan Talreja

CA Pavan Talreja (Expert)
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11 April 2015 ok, so you are talking about the Abatement.

Yes, 30% of ST @ 12.36%. i.e 3.708% if the freight paid for engaging full carrier vehicle is more than Rs.1500. if freight is below Rs.1500, ST is exempt.

Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2015 Dear expert
i am engaged in proprietorship firm plz let me know if i have paid directly 1000 freight to transport company for combined carrier whether i am liable to pay 30% ST under RCM or not.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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13 April 2015 nopes you need not to pay.. because it doesnt apply on prop firms....

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Querist : Anonymous

Querist : Anonymous (Querist)

13 April 2015 sir it doesn't apply on prop firms.. whether not paying excise on purchasing goods also not registered in excise