Gta_service tax
This query is : Resolved
Varun Gupta
(Querist)
25 October 2012
There is a partnership firm carrying on trading business.
Goods purchased by them come through Goods Transaport. In terms of Notification No. 30/2012-Service Tax issued on 20-06-2012. I understand that they have to deposit service tax on goods received by them and freight paid thereon on the basis of above circular.The monthly freight bill is around a lakh of rupees.
I require following clarifications:
1. At what point of time I’m liable to get myself registered as service provider?
2. Whether I’m entitled to the basic exemption of Rs.10 lakhs per annum?
3. Whether I’m entitled to set-off service tax paid by me on services received during the year?
Goods purchased by them come through Goods Transaport. In terms of Notification No. 30/2012-Service Tax issued on 20-06-2012. I understand that they have to deposit service tax on goods received by them and freight paid thereon on the basis of above circular.The monthly freight bill is around a lakh of rupees.
I require following clarifications:
1. At what point of time I’m liable to get myself registered as service provider?
2. Whether I’m entitled to the basic exemption of Rs.10 lakhs per annum?
3. Whether I’m entitled to set-off service tax paid by me on services received during the year?
Vishakha Kejriwal.
(Expert)
26 October 2012
Registration would be required immediately since as a service receiver paying service tax under RCM you are not entitled to the basic exemption limit of Rs. 10 lacs. Further apparently from your query the freight payment made, is in respect of goods purchased for the trading business. Hence the inward freight shall not qualify as input credit for set-off.
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