Service tax on transport
This query is : Resolved
19 October 2013
If a transporter are not registered in service tax and not mention in bill who will liable for service tax .
19 October 2013
GTA is covered under Reverse Charge Mechanism. As per the latest provisions, service recipients are liable for payment of service tax irrespective of whether the service provider is registered or not. Threshold level of exemption not applicable.
Hence if the GTA service recipient receives consignment of more than Rs.750/- then he is liable to pay Service Tax @ 12.36% after availing of 75% abatement i.e.on 25% of the freight bill.
To be liable the Service Provider has to issue a Consignment Note and if such Consignment Note is issued, the recipient is liable to pay the Service Tax. Since GTA payments are not eligible for Input Credit, the ST need not be shown separately in the Consignment Note or whose liability it is to pay the same.
Hence the service recipient is liable for payment of service tax.
Hence if the GTA service recipient receives consignment of more than Rs.750/- then he is liable to pay Service Tax @ 12.36% after availing of 75% abatement i.e.on 25% of the freight bill.
To be liable the Service Provider has to issue a Consignment Note and if such Consignment Note is issued, the recipient is liable to pay the Service Tax. Since GTA payments are not eligible for Input Credit, the ST need not be shown separately in the Consignment Note or whose liability it is to pay the same.
Hence the service recipient is liable for payment of service tax.
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
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Refund of AY 22-23
- TDR receipts for agreement holder
- Inventory of finished goods
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Applicability of Ind As to associate of associate
- Sale of property furniture sale
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 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
- GSTR3B IMS Deshboard ( Rec. Solution )
Trending Online Classes
CAclubindia
