Nitin jatav (Artical Assistant) (51 Points)
04 January 2017Dear Professionals,
We are a Private Limited Company, we purcahses many type of material from various suppliers out of which some suppliers charge Freight in their Invoice from us. Now my question is since the Reverse Charge Mechenism applicable on us, should we pay Service Tax on Freight to Govt., which is charged by us in Supplier Invoice.
Regards
Nitin Jatav
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178169 Points)
Replied 04 January 2017
Pvt Ltd company would be liable to pay service tax on RCM on services availed from the transport vehicles vendors provided the consignment note is issued in the name of Pvt Ltd company and payment of freight is made by it.
In your case. it is the GTA charging ST to your suppliers, and you are just reimbursing, so may not liable for RCM.
Nitin jatav
(Artical Assistant)
(51 Points)
Replied 07 January 2017
Dear Dhirajlal Rambhia,
Thanks for your valuable clarifiacton .
Regards
Nitin Jatav
CAclubindia
