Kiran (M.Com) (112 Points)
19 September 2014Dear All ,
There is an agent who is invoicing us for Transportation chgs with 12.36% on it. He is arranging vehicle for us, he doesn’t have his own vehicle.
Pls suggest if we are liable to Pay 25% ST as per reverse charge???
Can he charge ST in his invoice for 12.36%
Regards
Saurabh
(CA - Grand Finale)
(71 Points)
Replied 20 September 2014
Yes, since GTA service is covered under Full Reverse Charge. The Service Tax is payable by the person liable to pay Service Tax (belonging to specified category-Body Corporate, Factory, Society, Partnership Firm) and located in Taxable territory.
ST should not have been charged by agent. You should ask for a credit note for the same.
CA Ashish K Bansal
(partner)
(175 Points)
Replied 20 September 2014
CAclubindia
