Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
28 June 2013X, a trasport agency provide services in relating to transport of goods.so automatically reverse charge mechanism will apply
he billed consignee for amount of rs 10000
consignee liable to pay service tax on reverse charge mechanism of rs 1236.
how much consignee need to pay to X
does he pay 8764(10000-1236) to X?
or
does he pay entire amount of rs 10000 to X?
CA suraj prasad
(CA)
(205 Points)
Replied 28 June 2013
IF CONSIGNOR OR CONSIGNEE BELONG TO ORGANISED SECTOR N THEY LOCATED IN TAXABLE TERRITORY DEN ONLY REVERSE CHARGE APPLY
IN CASE OF REVRSE CHARGE APPLICATION ..CONSIGNEE OR CONSIGNOR WILL ONLY PAY VALUE OF SERVICE
FROM YOUR POINT OF VIEW RS 8764.
AND THE AMOUNT OF SERVICE TAX RS1236 SHALL BE PAID BY CONSIGNEE THROUGH GAR-7 CHALLAN
Nirav Worah
(CHARTERED ACCOUNTANT)
(396 Points)
Replied 28 June 2013
| Originally posted by : nuli swami ayyappa | ||
 |
X, a trasport agency provide services in relating to transport of goods.so automatically reverse charge mechanism will apply he billed consignee for amount of rs 10000 consignee liable to pay service tax on reverse charge mechanism of rs 1236. how much consignee need to pay to X does he pay 8764(10000-1236) to X? or does he pay entire amount of rs 10000 to X? |
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Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 28 June 2013
Yes...
GTA is not liable under reversecharge..
person responsible for payment of frieght is liable to discharge GTA and it should be either consignee or consignor..
So you can get 10000 from consignee or consignor ..
Thanks & regards
Ganesh babu k
Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 28 June 2013
Please note
GTA liable only if both consignor and consignee individuals
GTA liable if goods booked outside India and consignee from out of India is paying freight.
CAclubindia
