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Service tax on carriage inward

HONEY (Article Assistant) (28 Points)

12 June 2015

whether ST on carriage inward is payable as per reverse charge mechanism,if yes please give me the brief provision/Explanation.

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3 Replies

Hiten Tita (CA) (57 Points)
Replied 12 June 2015

Yes it is payable. 70% abatement is available to service receiver.Notification No. 30/2012-ST dated 20-6-2012. Rate of abatement has been revised from 1.4.15.

Amit Gupta (Student) (65 Points)
Replied 12 June 2015

If such inward service has been provided by GTA, then it is covered by Full Reverse charge mechanism.

Futher service receiver would be liable to pay 30% of ST (pursuant to abatement under notification no 26/2012)

Kashish Gupta (B.com (H) , ACA) (368 Points)
Replied 15 June 2015

First of all, determine PERSON LIABLE TO PAY SERVICE TAX

It is - 1. Person on whose name invoice is made

& 2. If Reverse charge is attracted, service receiver.

Secondly, determine location of Person liable to pay service tax. If it is in TAXABLE TERRITORY, service tax is applicable.

Thirdly, If entire vehicle is booked anf freight is upto Rs. 1500/- or one vehicle is carrying goods of more than one consignor, if freight payable is upto Rs. 750/-, NO SERVICE TAX IS PAYABLE.

Lastly, if service tax is payable, NN 26/2012 provides for 70% abatement(earlier it was 75%) - means 30% value is to be taxed @ 14%.

FA 2014 do away the requirement of obtaining certficate from service provider that he is not availing CENVAT Credit of Input Services.