Ashish Kr. Jalan (Manager (F&A)) (38 Points)
09 June 2012We are 40 year old Manufacturing Company Paying around Rs.5 Crore for Carriage Inward / Transportation charges on Raw materials purchased but have not paid Service Tax on Goods Transportation by Road till date. So I would like to know that if we start paying Taxes in Current F.Y than Deppt might ask for previous year Taxes.
So i would like to know the Tax applicablity, Penalty & Interest thereon and the date from which all will be applicable.
Thanks in Advance !!!
Regards,
Ashish Kr Jalan
ravi charan
(Taxation excutive)
(121 Points)
Replied 10 June 2012
Reverse charge mechanisam is apply for GTA means service receiver liable to pay service tax.
you shoud pay with intrest.
Sonu Kumar
(Account Manager)
(665 Points)
Replied 10 June 2012
Under tha GTA, Service tax is Paid by Service Receiver, But In Many Transpoeter Collect Service tax on Bill so Please Check Ur Bill Weather Service tax has been Charged or Not. if u have pay service tax then u need not to pay service tax. but if u have not pay u r liable to pay service tax.
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 11 June 2012
Mr Ashish Jalan,
I agree with mr sonu kumar. But before that you have to get yourselves registered under the Service Tax for GTA service. First of all, you have to classify and have 3 account codes for the transport charged paid by you either for your purchases or for the sales.
a) Freight charges-ST paid
b) Freight charges - ST not paid and above Rs.750/=
c) Freight charged - ST not paid but below Rs.750/=
For the items a & c you need not pay the service tax. For item b, you have to pay the taxes. So if you are able to classify this for the past years, your liability is reduced.
rengaraj r.k
Ashish Kr. Jalan
(Manager (F&A))
(38 Points)
Replied 12 June 2012
Thanks a lot,
Do i have to pay Service Tax wef 01/01/2005 ?
Do 75% abatement can be taken from 01/01/2005 ?
What will be the Interest and penalty % ???
Thanks in Advance !!!!
RENGARAJ R.K
(ADVOCATE)
(7557 Points)
Replied 12 June 2012
Yes, you have to pay from the past periods. And you can avail 75% abatement for calculating the service tax liability.
U/s 75 of the Act- Interest
Rate of Interest: 10.09.2004 to 31.03.2011 - 13% per annum
From 01.04.2011 - 18% per annum
Failure to pay service tax attracts a penalty under section 76 of the Act which shall not be less than Rs.200/- for every day during which such failure continues or @ 2% of such tax per month whichever is higher, starting with the first day after the due date till the date of actual payment. Before the department finds this and issues notices, it is better to pay it and close the issue.
rengaraj r.k
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 12 June 2012
Better now than never.
Start paying right now, and complete the same from current period, ( if pervious year accounts are open pre audit, then finish the same with that also)
As you have not paid service tax at all, means you are still not registered with ST, register yourself now, and pay for current period,
for previous years, you have two choices with some more details,
if you are registered under excise / Excise or service tax by any means , department will find the same under audit, and you have to discharge the liability at audit front at self willing, you can pay the same now with interest and keep the challans in file to satisfy the audit team that you had no intention to evade, but delayed without any malafide intention, unknowingly.
if you have no relation with excise/ service tax, then get yourself registered with ST right now and pay from current period, and let the department come for audit and on their audit front, state your lack of information/ knowledge but pay upfront at the audit period.
as the returns of previous periods are cumbursome and attract heavy penalty for late filing, its wise not to jump in late return filing unless you have got registered under ST in previous years.
RAMRAVINDRAN
(ADMINISTRATIVE OFFICER)
(22 Points)
Replied 12 September 2012
Dear Experts,
We are one of the manufacturing company and our products are Dal (Tur and Gram, Fried Gram) and Gram Flour and would request you to give your clarification on Service Tax on GTA. Whether we have applied on that for our products like Gram Dal, Fried Gram, and Tur Dal or comes under exemption b'coz agri products. We are in Tamil Nadu
Thank you in advance
Ramravind
RAMRAVINDRAN
(ADMINISTRATIVE OFFICER)
(22 Points)
Replied 12 September 2012
Dear Experts,
We are one of the manufacturing company and our products are Dal (Tur and Gram, Fried Gram) and Gram Flour and would request you to give your clarification on Service Tax on GTA. Whether we have applied on that for our products like Gram Dal, Fried Gram, and Tur Dal or comes under exemption b'coz agri products. We are in Tamil Nadu
Thank you in advance
Ramravind
CAclubindia
