Liability of service receiver in case of GTA

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gourav (Querist)
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10 May 2011 A company is receiving services from GTA service provider, but has not been registered under service tax and is not complying provisions of service tax act. What is the penalty that will be imposed on the company for non compliance of provisions regarding service tax on GTA? The company has not deposited any service tax to the government.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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10 May 2011 There is no liability for GTO [ operator/ owner] only on the booking agents who issue LR, CN who are called GTA.

If liability for past years exists then
The company can now under the provisions of Section 73 have an option to volutarily pay the laibility wherein the total amount due maybe calcuated, interest thereon calcuated @ 13%pa till 1.4.2011 and later at 18%pa, penalty of 25% calcuated. These maybe paid on which no notice would be issued.

If manufacturing goods then credit for the ST paid on inward/ intermittent freight wouldbe eligible and outward freight maybe available. [ disputed by revenue as of today]

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