Transporter and its category of service providing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2012 if the Service provider is registered under the category of service provided: courier agency and providing transport service to M/s ABC CO.

IS ABC CO HAS TO Pay service tax liability to govt .?
Transport co did not collect service tax as he claimed his service is exempted.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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04 August 2012 If ABC Co,. is already registered under Service Tax Act and incorporated under companies act, they can continue to collect and pay to the Govt.

If not, there is no liability for GTA and the entire service tax will be payable by the service receiver under reverse charge mechanism.

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2012 still i want more clarity on above my query....

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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08 August 2012 For GTA, the notification says that other than Companies the entire service tax liability is shifted to service receiver. Hence if your GTA service provider is a Company, service tax can be collected on 25% of the freight amount.