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Service tax for carriage inwards

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Meyyappan

Manager Accounts

93 Points Posted on 11 April 2015

Hi,

Im working in partnership firm. Have a query on the carriage inwards whether under reverse charge mechanism are we liable to pay any service tax? if yes what is the percentage?

then in certain cases we have LR copies and there they have mentioned ST @ 25% on the base value and claimed us.. in other cases no ST.. and also we didn't have LR (consignment notes) in some cases.. so how do we consider these?

Please brief..

Thanks in advance,

Regards,

Meyyappan.S

Replies (2)

CA Ashish K Bansal

partner

175 Points Posted on 12 April 2015

Partnership firm is covered in reverse charge u shud get regisetered and start paying service tax on frieght fir which u have c9nsignment note further dont pay service tax to transporter Yiu can claim abatement of 70persent wef from 01 april 2015

Manish K.Gandhi

Superintendent

966 Points Posted on 16 April 2015

Where freight is paid to Goods Transport Agency by registered Factory/Society/C.Ex.Dealer, Co-Op.Society, Body Corporate or partnership Firm they are liable to pay service tax in RCM and S.Tax not to be paid to transporter in terms of Rule 2(1)(d)(B) of STR and Notification 30/2012-ST(Sr.2 of Table). To issue consignment note is mendatory and if not issued it is an offence but can not change nature of service so S.Tax must be paid.

However, when transportation undertaken by an individual truck owner/driver the same is out ambit of GTA and hence not taxable.