03 July 2014
do ST reverse charge required to be paid on payment made to transporters ? IF yes then rate at which service tax reverse charge will be paid? is there limit on amount of expenditure?
03 July 2014
Services of 'transport of goods by road' provided by a 'goods transport agency' to the consignor or consignee in an 'organized sector' is a taxable service covered under RCM. Provider has no liability whereas the recipient has to pay 100% ST.
Ps:- For the meaning of 'organized sector', please see Clause IA(ii)(a) to (f) of notification 30/212-ST dated 20.6.2012.
Please note that notification 34/2004-ST has been rescinded by notification 34/2012-ST. Still exemption can be availed under RCM vide notification 25/2012-ST as rightly pointed out by Ganeshbabu Ji
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