Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Gta

CA Vijay Jain (Chartered Accountant) (176 Points)

29 May 2015

please help me out. I have a partnership firm in Alwar Rajasthan which is engaged in trading of Silica Sand (to be used in mfr of vehicle glasses) problem is that I need per day 20 trucks of raw material from outside of my city. per day freight is being paid about 400000 rupees. now the question is whether I need to pay service tax on transport services under reverse charge. please note I m not taking the help of any GTA. I just go to the market and hire the trucks. second question is whether I need to deduct tds on freight paid to truck owners/drivers. please further note that I am not making any contract with him.. please advice me suitably with the help of any case law if available..

Reply
Follow
Share

6 Replies

YOGESH (STUDENT) (128 Points)
Replied 29 May 2015

As per the Service Tax Act in case of GTA the service tax is payable by the Service Receiver and TDS in not applicable in case of Freight Charges if the same provides the PAN Number.

If the PAN is not provided TDS @ 20% is applicable

Upgrade to CAclubindia Pro. Subscribe Now!

BHARTI SONI (Chartered Accountant) (27 Points)
Replied 29 May 2015

For being called GTA, The Service should be provided for transport of goods by Road and Consignment Note by whatever name called should be issued. Accordingly it will be governed by the provisions in relation to GTA.

Nitin sharma (jobs) (121 Points)
Replied 29 May 2015

Pls urgr reply gta calculation nd entry pass

ankur goyal (Finance & Accounts Analyst) (23 Points)
Replied 29 May 2015

In this case no need to charge service tax under reverse charge mechanism and no need to deduct tds

Kashish Gupta (B.com (H) , ACA) (368 Points)
Replied 29 May 2015

Please answer the following questions

1. Are you in receipt of consignment note from GTA Service provider?

2. Whether invoice is in your name?

3. Is there any payment upto Rs. 1500 per truck ?

If answer to above question is

1. Yes 2. Yes 3. No

Then, you are liable to pay service tax under Reverse Charge Mechanism.

Doing so, if payment is made on or after 01.06.2015, you will have to pay service tax @ 14%.

However, if you get invoice in the name of your customer WHO IS AN INDIVIDUAL, reverse charge would not be applicable and GTA Service provider would levy service tax in his invoice and if invoice is issued before 01.06.2015, ST Rate will be 12.36%. Doing so, you will save 1.64%

Moreover, in the second case there are chances that GTA Service provider is not registered under service tax, You can save entire service tax because he will not levy it in the invoice.

Upgrade to CAclubindia Pro. Subscribe Now!

LALIT (STUDENT) (25 Points)
Replied 30 May 2015

Reverse Charge provisions are applicable provided transporter issues Consignment note or any other document. TDS u/s 194C will not be deducted if transporter furnishes PAN, otherwise 20% tds is required to be deducted u/s 206AA.