Gta

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yash gupta (Querist)

04 May 2014 Hello, we are into the business of Ginning & pressing of cotton, at the time of purchasing of cotton we pay freight to transporter which is usualy approx 25000-26000 on each purchase ; now whether we are required to pay service tax on such services and also whether we have to see first about the limit of 10 lakhs of transporter or not ?? Kindly clearify and give reference.

Annu Agarwal

Annu Agarwal (Expert)

04 May 2014 You shall be required to pay service tax on freight as service receiver under reverse charge if you are:
-any factory
-any society
-any co-operative society
-anybody corporte
-any excisable dealer
-any partnership firm.

If you are paying the service tax under reverse charge,then it does not matter whether the transporters turnover limit is 10 lakkhs or not.

yash gupta

yash gupta (Querist)

06 May 2014 Thanxs for the valuable reply Annu.

As we are A body corporate; so whether we are exempted if we have not in the receipt of services of more than 10 lakhs. And if not then whether we are required to be registered under service tax as reverse charge is applicable on us or simply we can pay service tax.??
Plz. do the favour.

Annu Agarwal

Annu Agarwal (Expert)

06 May 2014 10 lakh exemption is not available for service receiver i.e you.
You need to first apply for service tax registration ,then only you can pay service tax.Your service tax liablity arises when you make the payment for service .

yash gupta

yash gupta (Querist)

09 May 2014 thank you.
I have one more doubt that in GTA their is a provision that the party who bear the transportation charges has to pay service tax. Now if suppose out of total 50000 freight 20000 is bear by the consignor and 30000 is paid by consigee on delivery; then who is liable to pay service tax.

Annu Agarwal

Annu Agarwal (Expert)

09 May 2014 If 20,000 freight is paid by consignor and he falls in any of the category specified in Rule 2(d)(B) then consignor shal pay the servic tax,otherwise GTA shall pay the same.

Same is for consignee.

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