Service tax querry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2013 Sir,

Any one please solve my Query- that one of my friend is running a prop.ship firm of trading of goods in Delhi. He has to pay freight to Transporter on Consignment note basis regularly since the goods come through other state. He is not registered with the service tax deptt, since he is not doing business of providing services. Should he has to register his prop.ship firm or himself with service tax deptt.and should he has to pay Service Tax under GTA (reverse charge).

Thanks in Advance for prompt reply.

Anil Jain
9312640067
akj9312640067@gmail.com

kunal

kunal (Expert)
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28 January 2013 reverse charge is applicable if
a)person liable to pay freight is individual or huf,
b)person liable to pay freight is outside taxable territory

in your case whole amount of service tax is to paid by transporter..

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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28 January 2013 As the service receiver i.e. your friend do not fall under the specified category as given in the rules, reverse charge mechanism would not be applicable and transporter would be liable to pay service tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2013 Kunal Sir,
Thanks for your quick reply.
I don't understand clearly. why Transporter will pay the service tax. Further
1) if consignor & Consignee both are Individual.

11)If the consignor of the goods are partnership Firm or Company.

Then who will pay the service tax

Thanks in Advance
Anil Jain
9312640067
akj9312640067@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2013 Thanks a lot to Mr. Kunal & Ms. Richa CA.

You both are correct.

Regards
Anil Jain