24 December 2014
we a pvt ltd company service received from GATI Kintetsu Express Pvt limited for goods transport by road a value of RS.20,000 and Service Tax @ 12.36% paid, but RCM liability also arises on us?
As per section 68 of finance act 1944, if a specified person(cover consignor or consignee) has taken the services of GTA and builty is paid by consignor or consignee then that person who is paying buity is liable to bear the service tax liability on revese charge basis.
However exemption is available if single consignment and more than one consignment is Rs.750 and Rs.1500 respectively.
One more thing , atleast one person from consignor or consignee should be specified person.
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