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Service tax

RAHUL PAREEK (study) (167 Points)

18 June 2015

I am going to start a business of Transportation of Goods. Please provide me all service tax provisions applicable on my business at a glance.

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CA Vinit Ratnaparkhi (Internal Auditor) (66 Points)
Replied 18 June 2015

All the services related to transportation of goods by road are exempt from service tax except

i) Goods Transport Agency

ii) Courier Agency

So in your case since you are going to start a Goods Transport Agency you will be liable for service tax. However as per reverse charge mechanism the service receiver of goods transport would be liable to pay service tax on the 30% of the value of the bill @ 14%. Hence you need not have to pay any amount as regards to payment of service tax.

Only those service receiver would be liable to pay service tax who are liable to pay freight and it must be a body corporate, factory, co-operative society, partnership firm.

Also it is advisable for you to get registered under service tax when your value of service provided exceeds rupees nine lakh in a financial year.

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saranraj thangaraj (articled assistent) (121 Points)
Replied 18 June 2015

reverse charge mechanism... can anyone explain the concept

priyanka jha (student) (62 Points)
Replied 19 June 2015

Reverse charge mechanism Is when service provider pays S.T instead of service receiver.

ashish (article) (151 Points)
Replied 19 June 2015

@ priyanka jha......under reverse charge..service receiver is liable to pay service tax instead of service provider.. Service provider will pay service tax under normal charge..... @ rahul.......provision related to service tax well explained by Vinit jii.......except following.... Servicerelated under reverse charge

ashish (article) (151 Points)
Replied 19 June 2015

Service related to goods transport agency under reverse charge provided to organised sector ...here organised sector includes.. 1. Partnership firm , body corporate...(in all cases) 2. Coperative society 3. Propreitorship firm (if factory as per factory act..or dealer in excisable goods) .. .........so if gta provides service to proprietorship firm (not falling under above case) or individual then such gta shall charge service tax as per provisions of normal charge.....

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RAHUL PAREEK (study) (167 Points)
Replied 19 June 2015

@ CA Vinit Ratnaparkhi is there will be any impact if i mentioned on my GR that "Service tax will be payable by either consignee or consignor. Further is the return filling is compelsory after registration.