25 November 2015
A who is GTA, B is mediator (Clearing agent) while C is Ultimate client. Here, A charge bill amounting to rs 100(without Service Tax) to B, further Mr B make billing to C amounting to Rs 150 (without Service Tax).
Now as per service provision who is liable to pay tax and at what amount ? Is B liable to pay Service tax and further B charges in invoice and than again C is also liable..??
26 November 2015
SERVICE TAX ON GTA IS PAYABLE WHEN THE TRANSPORTATION CHARGES ARE PAID TO GTA IT MEANS ONLY TO THE TRANSPORTER NOT REIMBURSEMENT HENCE ONLY DIRECT PAYMENT TO TRANSPORTER WILL BE COVERED UNDER SERVICE TAX HENCE 'B'IS LIABLE TO PAY SERVICE TAX PROVIDED SERVICE RECEIVER IS A SPECIAL PERSON I.E., COMPANY, PARTNERSHIP FIRM. AND IF B IS COLLECTING SERVICE TAX ALSO FROM C THEN C CAN TAKE CENVAT CREDIT OF SUCH AMOUNT AND C IS NOT LIABLE TO PAY SERVICE TAX ON SUCH AMOUNT ON WHICH ALREADY ST IS PAID BY B
27 November 2015
He is not a GTA so no abatement available besides service tax payable on reimbursement of expenses. So 14% service tax payable on 150.
CAclubindia
