02 July 2013
Hi,friends Our client is Logistics.The main objective is providing service to customers who generally import goods from abroad.The client will see the formalities to be completed at Port and deliver goods at customer place. For this he will hire transport for transferring goods from port to customer place.Here transporter is issuing invoice with out service tax component to the client i.e logistics, and our client is also not paying service tax to him on transport charges.And he is also not charging service tax on transport to his customers.In this case who is liable to pay service tax and at what rate ? is there any abatement..? Please post u r phone number for further clarifications
03 July 2013
Service provider turnover is more than 10 lakhs then they should registered with service tax and pay the duty. But as per reverse charge system under notification no. 30/2012-ST recipient will liable to pay service tax on GTA services. The abatement is 75% of the assessable value.
03 July 2013
If mediator is paying the service tax on GTA services. They are liable to pay service tax under reverse charge system. Service provider is under ssi exemption then no need to pay service tax and actual service recipient is not liable to pay service tax if they are not paying freight charges.
CAclubindia
