LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Service tax on transporter

Avinash Gupta (Accountant) (29 Points)

13 September 2014

we are trader, we received a bill of rs 10500 + 2000 for labour and no service tax has been charges by transporter bill

should i have to pay service tax to him, or directly to govt.
and on which amount , Service tax will be charged

means with labour or withour labour.

Reply
Follow
Share

3 Replies

Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 13 September 2014

Dear sir,

Yes. you need to register & pay service tax on gross value amount of Transport bill and claim 75% as deduction and pay service tax on remaining 25%.

You can also take the credit if you have output liability. and if the same is inward transportation.

Thanks

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 13 September 2014

If you are an Individual or a proprietor of a firm, and you are not registered as Dealer with the Central Excise and you are not covered under the Factory Act, 1948, than you are not required to pay any service tax to the department. If the GTA charge the same in his bill, then only you have to pay it to the GTA.

Otherwise, you have to pay service tax @ 3.09% of Rs. 12500 under reverse charge directly to the government vide GAR-7 Challan.

Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 14 September 2014

[(d) “person liable for paying service tax”, -

(i) in respect of the taxable services notified under sub-section (2) of section 68 of the Act, means,-

(A) in relation to service provided or agreed to be provided by an insurance agent to any person carrying on the insurance business, the recipient of the service;

[(AA) in relation to service provided or agreed to be provided by a recovery agent to a banking company or a financial institution or a non-banking financial company, the recipient of the service;]

(B) in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—

(I) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(III) any co-operative society established by or under any law;

(IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(V) any body corporate established, by or under any law; or

(VI) any partnership firm whether registered or not under any law including association of persons;

any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage :

Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.