SANJAY (CHARTERED ACCOUNTANTS) (943 Points)
12 October 2011Dear Members,
Will you please clarify that in case of GTA services where liability to pay service tax is in the hands of Consigner or Consignee. Will GTA should file NIL return as the liabality to pay tax is on recipient's hands or GTA should file return billing basis and take exemption under exemption notification number then what is the exemption notification number in this case??
Please reply soon as its urgent!!
Thanks
Sanjay Verma
Rahul
(Chartered Accountnat CS)
(1580 Points)
Replied 12 October 2011
See if Consigner/ consignee is among
1 company
2 Factory
3 Staturary corporation
4 reg. society
5 cooperative society
6 Reg dealer (under central excise)
7 Body corporate
8 reg partnership
then liability lies with consigner/ consignee based on WHO WILL PAY FREIGHT
OTHERWISE GTA WILL BE LIABLE
SO STATUS OF YOUR CLIENT IS NECESSARY IN DETERMINING SERVICE TAX LIABILITY
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 12 October 2011
Dear Rahul,
The status of Client is Company....
But rahul i m asking for filing of service tax return.. For GTA whether we should file Nil return or otherwise...??
shanil jain
(CHARTERED ACCOUTANCY)
(60 Points)
Replied 12 October 2011
Sir
A plain reading of sec 70 of Finance Act, 1994 suggests that only the persons liable to pay service tax under the Chapter V of the said act are liable to file the return of Service Tax.
Those liable to file shall file the return irrespective of the fact of non-providing of service during the period of Return of Service Tax.
:)
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 13 October 2011
Dear Shanil,
What you want to say i didnt get.. Well as per my view if GTA got registered under service tax. He has to file service tax return even if he has not paid any amount of service tax during this period.
But my question is that if tax is paid by consignor or consignee then how GTA will claim the exemptions during filing of Service tax return. I want to know the exemption notification number regarding this.. And other is that whether GTA should fill the amount of bills issued during this period in colom of bills raised in ST-3 or we should not fill any amount in it..
Please reply soon????
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 13 October 2011
Value of service provided by GTA in respect of which tax has been paid under reverse charging, is not to be shown in the ST-3 filed by GTA.
SANJAY
(CHARTERED ACCOUNTANTS)
(943 Points)
Replied 13 October 2011
Is it wrong if GTA filed the return and shows the value of service charged in the row of taxable amount charged and take exemption under notification no. 35/2004- ST by showing full amount charged in row (m) of Point II in ST-3.
Please clarify..
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 13 October 2011
Techinically , what you have done is the correct position. But, department is not pressing for such a disclosure.
shanil jain
(CHARTERED ACCOUTANCY)
(60 Points)
Replied 14 October 2011
i agree with Unnikrishnan sir, Verma sir what i wanted to say was if the GTA is not liable to pay tax then it is not liable to file return. since the GTAs are not liable to pay tax in case the consignor/consignee falls in those mentioned class of persons, hence no liability to file return.
but if the GTA is registered under Service Tax then return is madatory even if nil return.
CAclubindia
