Meyyappan (Manager Accounts) (93 Points)
11 April 2015Hi,
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
CA Ashish K Bansal
(partner)
(175 Points)
Replied 12 April 2015
Manish K.Gandhi
(Superintendent)
(966 Points)
Replied 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.
CAclubindia
