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Gta- reverse charge mechanism

KM Rajeev (others) (118 Points)

14 January 2016

I have a specific query. If a GTA provides service only to a LTD Company (specified person) then the LTD company is liable to pay service tax. But what are the compliance requirement of GTA? Should GTA file ST3 if so how to file the same ? (challans relating to service tax payments are not available with GTA)

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Arpit verma (Indirect tax) (1372 Points)
Replied 14 January 2016

GTA Services

Means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.
Services provided by GTA in respect of transport of goods by road.
Person liable to pay freight (directly or through agent) should be—
1. any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
2. any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
3. any co-operative society established by or under any law;
4. any dealer of excisable goods, who is registered under the Central Excise Act, 1944 or the rules made thereunder;
5. anybody corporate established, by or under any law; or
6. any partnership firm whether registered or not under any law including association of persons
Explanation I – The person who pays or is liable to pay freight for the transportation of goods by road in goods carriage, located in the taxable territory shall be treated as the person who receives the service for the purpose of this notification.
Liability of service receiver – 100%.
When freight is paid by a person located in non taxable territory, the liability to pay tax is on service provider.
Place of provision Rule 10 – Location of the person liable to pay tax shall be the place of provision.
Service tax paid on reverse charge also eligible for cenvat credit on the strength of challan.
Service tax payable on reverse charge cannot be paid through cenvat credit a/c.
Point of Taxation – Date of Payment of invoice or 3 months from date of invoice - whichever is earlier.
ST-3 is required to be filed

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KM Rajeev (others) (118 Points)
Replied 15 January 2016

Dear Arpit

We are providing service only to a Public Ltd company and they are paying service tax. Now , should the GTA disclose the amount of service rendered to the Public Company in ST 3 or just file a NIL return?

Arpit verma (Indirect tax) (1372 Points)
Replied 15 January 2016

If u r providing the service of GTA to a company in respect of transport of goods by road only. then the service receiver will be liable to pay service tax under RCM.

And You r not required to disclose the amount of service rendered to a Company in ST 3 .

Show the amount only when you are liable to pay service tax.

I hope that My reply will be very helpful for you.

Thanks & Regards

ARPIT VERMA

1 Like

KM Rajeev (others) (118 Points)
Replied 15 January 2016

Dear Arpit

Thank you very much. My doubt was whether the GTA has to disclose the amount in exemoted service and file the ST3 return. Once again thank you very much for the help