Gta applicability

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manohar reddy (Querist)

31 December 2013 dear sirs,
Applicability of service tax reverse charge for services received from individual to partnership firm

Please let me know

CA DHEERAJ

CA DHEERAJ (Expert)

01 January 2014 Service tax has to be paid only on 25% of the gross amount paid to the Goods Transport Agency. For gross amount, octroi is not taken in account.
The tax is payable on reverse charge basis by consignor or consignee who ever pays the freight, if the consignor or the consignee is factory, registered society, co-operative society, registered dealer, body corporate, partnership firm, LLP and association of persons.
If the goods transport agency has charged service tax then no service tax is payable by consignor or consignee.

Annu Agarwal

Annu Agarwal (Expert)

01 January 2014 Dear Sir
Service Provider-GTA is individual
Service Receiver -Partnership Firm

As per section 68(2),service tax shall be paid by service receiver in case of GTA if the service receiver is a partneship firm.

Section 30/2012 provides for abatement says servic etax shall be paid on 25% of freight value.

In your case,servicetax shall be paid by partnesrship firm @ 12.36%.

manohar reddy

manohar reddy (Querist)

19 February 2014 Thank U Both For giving me Answer

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