19 October 2014
1. When & how GTA by road will be required to pay service tax on Freight received?
2. What amount of freight received will be considered while the calculation of Exemption limit of Rs.10 lac i.e. only those freight receipts on which GTA itself is required to pay service tax OR consignor's and consignee's also?
3. In case exemption limit of Rs. 10 lac has already been crossed then GTA will be required to pay service tax on every freight receipts without considering the reverse charge Or for only those if both consignor & consignee are individuals?
4. Can GTA also avail 75% exemption while paying service tax?
20 October 2014
Answer1:GTA will be required to pay service tax when the "person liable to pay freight" is an individual or a proprietorship or HUF. Service tax has to be paid through challan.No. Refer entry No. A(ii) of N/No.-30/2012
Answer2:As per notification no.33/2012 "aggregate value" means sum total of value taxable services provided but does not include services which are exempted from whole of service tax levied u/s 66B. So it is no where mentioned that aggregate value doesnot include those services value on which servic etax is levied under reverse charge. So as per my view while calculating the exemption limit of 10,00,000 the value of taxable service of GTA on which service tax is paid under reverse charge shall also be considered. Answer3:Once the exemption limit is criossed,GTA shall be liable to pay service tax only when the person liable to pay freight is a individual or HUF. In case person liable to pay freight is a specified person ,tehn service tax shall be paid under reverse charge. Answer4:Yes,the GTA can avail exemption of 75% provided it does not take cenvat credit on inputs,capital goods and input services.Notification 13/2012
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