Query

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CA rahul

BCOM(H) ACA

725 Points Joined November 2008

a companyy received transporter bill for freight in the billty it was mention that freight is to be paid by consignee and service tax too ie the transporter donot charge service tax .company is registered under service tax but whos aggregate value of billing of taxable service comapny s providing does not exceed 10 lakh .my question is comapny is required to paid service tax and required to be regiister as GTA

Replies (2)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3488 Points Joined June 2011

The concept of ceiling of 9 lakh or 10 lakh is not applicable for service tax discharge under reverse charge mechanism in line with rule 2(1) of service tax rules 1994.

For payment of freight under reverse charge concept, registration is needed under taxable category of GTA.

You need to amend your RC.

Regards,

nilesh nandankar

C.A FINAL C.S EXECUTIVE STUDENT

51 Points Joined August 2010

dear friend,

As per service tax rules, 1994 the basic exemption limit concept is only applicable from the view point of service provider and not from the view point of service recever . if service receiver means company receiving any transportation services from their transporter the S.R are required to charge, collect and pay to the dept. and for the same they can also avail cenvat credit . IN THAT CASE SERVICE RECEIVER WILL GET ABATEMENT OF 75% AND ONLY ON 25% THEY ARE REQUIRED TO CHARGE AND PAY TO DEPT.

IF THE AMT. IS >= RS.1500/-

NILESH NANDANKAR......C.A FINAL, C.S EXECUTIVE STUDENT