1) A firm bein service receiver of goods transport via road service need to register and pay ST. Being unaware of such provision never made arrangements for such ST payment. subsequently aft registration how to compute of such and remit? can batement of 75% be had? will the whole ST be expense to firm as same cant be recovered from the GTA provider or on his ST portion.
2) need clarification like havent made arrangement for ST and now have to file ST means how to adjust the same? should the firm bare it as expense?
3) Had the GTA was regular ST payer and filed their returns and now the firm subsequent to its regist also pays wont it be double payment of ST for same service?
4) wat is current Interest rate for delay in ST remitance. plz give section or notification No. for the same
08 February 2010
Following are the answers for your queries -
1)Firm needs to compute the tax payable from the date the firm has obtained registration and as per the limits prescribed in the Law i.e. if the vehicle is fully loaded with your goods then on the transport receipts of more than Rs. 1500/- and in other cases on the transport receipts of more than Rs. 750/-. The abatement of 75% can be availed only if the service provider is not availing any CENVAT credit.But normally such information is not available with the assessee so 75% abatement can be availed.
2)Being the service receiver, if the assessee is not utilising the said goods transport service as input service for any output service or for manufacturing activity, the service tax paid should form part of expenses of the Firm.
3)As per the definition of the person liable to pay tax under GTA service is "the person making the payment of transport charges whether consignor or consignee is any of the person mentioned then such consignor or consignee as the case may be is required to pay the tax". So it is advisable that the Firm should ask the GTA that service tax on the transport charges paid to such GTA will be born by the Firm.
4)The current interest rate for delay in ST remittance is 13%p.a. for the number of days delay.
09 February 2010
Thx jigar/ can u explain wat u mean by pt No. 2 - input service for any output service or for manufacturing activity, the service tax paid should form part of expenses of the Firm.
Also need to know that so prior to registration period no filing be made or no liability be computed? say regist made in oct 2009. wat abt for half yr ended till sept 2009?
CAclubindia
