14 Replies
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 26 August 2012
this is in case of gta where u r liable to pay st on reverse charge mechanism.u are liable to pay st to central excise but not to transporter and u r liable to register irrespective of ur turn over
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 26 August 2012
The onus of paying service tax on GTA has been shifted to service receiver long back (not from 01.07.12). So, you, as a company, has to register yourself under service tax act and start paying service tax under reverse charge for freight bill value of above Rs.750/- and you can avail abatement of 75%.
Sowmya S
(CAO)
(214 Points)
Replied 30 August 2012
Dear Sir/Mam,
V r into indl. gases trading & v do avail transporter services, v pay ST @ 12.36% on 25% of the consignment note to the dept. in case where the transporter does not charge ST in his bill & after that v disclose the same in the ST returns. I
n case, where the transporter charges ST in his bill, v pay the entire amt. to the transporter himself & v do not remitt ST amt. to the dept.
Is it correct r not??? Plz guide me.
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 30 August 2012
You should not give Service Tax to GTA as you are corporate entity and you need to discharge the ST liability. However if transporter has collected ST then maintain proper record and do not pay ST twice.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 30 August 2012
@ Sowmya S.
Many transporters fail to remit the service tax collected by them and hence the department wanted the company/firm/excise units etc to pay the service tax on GTA initially 25% under reverse charge. Therefore unless GTA itself a company like TCI, VRL, service tax need not be collected in the bilty and only service receiver has to pay the service tax, under separate challan.
Sowmya S
(CAO)
(214 Points)
Replied 31 August 2012
Mr.RENGARAJ R.K,
Sir, do u mean to say that i should deduct ST from the amt. payable to the transporters(like TCI, VRL who include ST in their bill) & remitt the ST to dept.???
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 31 August 2012
@ Sowmya S,
It is not the question of deduction. If TCI is charging service tax, as a company registered under companies act, and also in the service tax, the service receiver need not deduct or pay any thing. Just leave that bills for service tax purpose. The service receiver has to pay where it is not collected.ie, GTAs of individual or firm etc.,
Now it is clear?
Sowmya S
(CAO)
(214 Points)
Replied 31 August 2012
Chandan Gupta
(Accounts Officer)
(24 Points)
Replied 20 July 2013
The discussion was quite informative . Thanks
Lalit Poddar
(Partner)
(26 Points)
Replied 21 July 2013
We are a partnership firm and a Factory Science 2009, Paying Freight on carraige of Wheat, as such we need to pay service tax if not paid by GTA, but Govenment vide notification no. 28/2009 dated 31.08.2009 exempted wheat from service tax. Now department is asking me to show papers, showld I show them papers or the matter is barred by limitation of 18 months. Please Help
BIPLAB GHOSH
(ACCOUNTANT)
(23 Points)
Replied 04 January 2014
Sir, if transporter have own vehicle and he never give me any consignment note then our company is liable for service tax.
CA Ankit Mittal
(Charterd Accountant)
(118 Points)
Replied 04 January 2014
If there is no consignment note then it is not GTA service
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 04 January 2014
Correect. If consignment note is not given, it will not be covered under GTA.
regards
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