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Discussion > Service Tax >

Service Tax on GTA

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Accountant

[ Scorecard : 162]
Posted On 29 August 2009 at 03:15 Report Abuse

Please correct me if I am wrong:

a) Service Tax on GTA is to be paid by the manufacturer receiving the goods

b) Servie tax is to be paid on 25% of the transport bill value * Service Tax rate

c) Service Tax is to be paid before the 5th of the month for the amounts paid to the transporters in the previous month

d) CENVAT can be claimed on the Service Tax paid for Carrage Inward

e) CENVAT cannot be claimed on the Service Tax paid for Carrage Outward

f) CENVAT credit paid on Carriage Inward can be claimed any time - after 2/4/9 months of payment of service tax also.

g) Service Tax need not be paid in cases where the singe transporttation bills for transportation of single product (may be raw material, spares, or other miscellaneous items) is below 1501.

Regards,

Prateek


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CA.kaya
Chartered accountant

[ Scorecard : 3953]
Posted On 29 August 2009 at 08:26

you are correct. service tax on GTA is paid only if the transporter is not paying service tax and he is not having service tax reg number.

and i think service tax is paid only when bill amt exceeds 750Rs ( if it is exclusive for your firm then 1500Rs).

and we got to pay service tax for carriage out wards also( delivery charges paid to give producy delivery to customer place)



Total thanks : 1 times




sandip bhogayta
manager - taxation

[ Scorecard : 65]
Posted On 29 August 2009 at 10:38

Dear  Pratik &  Kaya

as per the service tax rules liability to pay service tax on GTA  is Company & partnershipfirm whose make a payment to the transporter, but if the GTA service availed by the individual then the liability of Servicetax payment go on Transporter,

further more when the goods sold on FOR basis & the place of removal is buyer's factory gate then we can availed the CENVAT credit of service tax on outward transporation.

moreevere the liabilti to pay service tax occuered when the freight is more then Rs. 1500/- for single lorry & 750/- when more then one party goods come in one lorry



Total thanks : 1 times



RITESH KOTHARI
B.COM, ACA, DISA(ICAI)

[ Scorecard : 771]
Posted On 29 August 2009 at 12:06

 ONE THING MORE:

 

YOU CANNOT AVAIL UTILISE CENVAT CREDIT OF SERVICE TAX PAID ON OTHER SERVICES RECEIVED FROM THE SERVICE TAX LIABILITY OF GTA.

 

REGARDS,

 

CA RITESH KOTHARI




santhosh
Student

[ Scorecard : 1164]
Posted On 29 August 2009 at 22:18

Please check... CENVAT credit is not available for GTA services....




Ashish
Accountant

[ Scorecard : 162]
Posted On 02 September 2009 at 22:47

Please check... CENVAT credit is not available for GTA services.... ???

Check it where....please ellaborate




RITESH KOTHARI
B.COM, ACA, DISA(ICAI)

[ Scorecard : 771]
Posted On 03 September 2009 at 12:31

 IT IS THERE IN THE ACT ITSELF.

 

IF YOU ARE AVAILING THE BENEFIT OF 75% ABATEMENT THEN CENVAT CREDIT IS NOT AVAILABLE




Ashish
Accountant

[ Scorecard : 162]
Posted On 03 September 2009 at 14:19

Originally posted by :RITESH KOTHARI
"  IT IS THERE IN THE ACT ITSELF.
 
IF YOU ARE AVAILING THE BENEFIT OF 75% ABATEMENT THEN CENVAT CREDIT IS NOT AVAILABLE
"

Can you please provide the extracts of the rules/act where it states that " AVAILING THE BENEFIT OF 75% ABATEMENT THEN CENVAT CREDIT IS NOT AVAILABLE"




Ashish
Accountant

[ Scorecard : 162]
Posted On 03 September 2009 at 14:28

Originally posted by :santhosh.G
" Please check... CENVAT credit is not available for GTA services.... "

 

Can you please privde the relevant extract from the Act / Notification.




suren
Manager Finance

[ Scorecard : 623]
Posted On 03 September 2009 at 21:24

 Govt has already  clarified in the Notification it-self that Service Tax Liability is  to be discharged in CASH,  you can not use CENVAT CREDIT  as 75% Abatement is available . That means for the payment of Rs 100 / towards Transportaion Charges you have to pay only :-

Transportation Charges                      Rs 100-00

Less : Abatement                                  Rs   75-00              Balance Rs     25-00

Service Tax Liability @ 10.30%   on Rs 25-00   Rs 2-575 that shows GTA SERVICE TAX LIABILITY is only 2-575% only.







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