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Service tax in gta

DEEPAK KUMAR PANDEY (Student CA IPC / IPCC) (55 Points)

17 August 2016

Dear Friends, total amount of transporation services received by company is 1500000 and no service tax is in bill. My company has no services tax libility further. Kindly suggest me who will lible to pay service tax in GTA. Company has no service tax no.Is Company is lible to pay. And how Turnover criteria is decided in this case Thanks

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shubham (student articled assistant) (22 Points)
Replied 26 August 2016

If service is not exempt under Mega Exemption Notification 25/2012 dated 20/6/12 than Company is Liable to pay service tax under Reverse charge Mechanism. If company does not have Service tax registration no. they have to apply and get the registration no.

Since company is required to pay service tax and not the GTA, hence GTA has not charged the same.

In case of RCM, there is no threshold exemption of 10 Lakhs so no turnover criteria is required. It is applicable only to service providers.