Gta by road

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Ankush

33 Points Joined May 2012

1. When & how GTA by road will be required to pay service tax on Freight received? 2. What amount of freight received will be considered while the calculation of Exemption limit of Rs.10 lac i.e. only those freight receipts on which GTA itself is required to pay service tax OR consignor's and consignee's also? 3. In case exemption limit of Rs. 10 lac has already been crossed then GTA will be required to pay service tax on every freight receipts without considering the reverse charge Or for only those if both consignor & consignee are individuals? 4. Can GTA also avail 75% exemption while paying service tax?

Replies (2)

Abhijeet Deshpande

Co-Founder & Manager @ Tax-Yantra

1171 Points Joined June 2010

1. GTA will be liable to pay ST if person (service recipient- person who pays frieght) is located in non taxable territory or the service recipient is individual, HUF, BOI. 2. Taxable turnover ( consignment notes or invoices) on which GTA has paid ST will be considered for calculating limit of Rs. 10 lakhs, irrespective of his total turnover. 3. Rs. 10 lakhs limits is to decide SSI exemption and has got nothing to do with reverse charge. Reverse charge will continue to apply as before. 4. Yes. If he does not avail cenvat credit. If he avails, he need to pay ST on 100% of value