Liability to pay gta service tax

This query is : Resolved

Sabareesh (Querist)
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16 December 2014 Dear experts,
We are a partnership firm providing CHA services. Since our liability to pay service tax on output services is on quarterl basis, we opted to pay service tax under GTA also on quarterly basis.

Are we correct in doing so?
Can we pay GTA liability on monthly basis?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 December 2014 only if ur liable to pay frieght then only u have to pay tax for gta...if ur providing cha service then u must register as cha agent and not gta...ur not correct

Sabareesh

Sabareesh (Querist)
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16 December 2014 Dear Sampat Sir,
My query is, can a partnership firm pay service tax under GTA on monthly basis?

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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27 December 2014 As per Rule 6 of Service Tax rules 1994, assessee in case of partnership firm require to pay Service tax on quarterly basis, irrespective of the type of type of service provided.

However, if you willing to pay Service taxes for GTA on monthly basis, you can do so but it will be treated as advance payment of Service tax and you need to follow the principle lay down under rule 6(1A) of the said rules

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Sabareesh

Sabareesh (Querist)
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02 January 2015 Dear Kumar Sir,
In such case, can I adjust the GTA liability paid in the month of April & May while paying output service tax in July i,e service tax liability of Q1.

In detail for eg:
April - GTA liability - 500/-
Output ST liability - 9000/-
GTA liab of 500/- paid on May 1st
May - GTA liability - 600/-
Output ST liability - 10000/-
GTA liab of 600/- paid on June 1st
June -GTA liability - 700/-
Output ST liability - 11000/-
GTA liab of 700/- paid on July 1st

Now, while remitting the service tax liability for Q1 (9000+10000+11000)=30000, can i adjust the GTA liability paid (500+600+700)=1800? Net payable will be 28200 (30000-1800)

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2024 You can adjust the GTA service tax liability paid in the month of April, May, and June against your output service tax liability while paying for Q1. This adjustment will result in a net payable amount of Rs. 28200, calculated as the total output service tax liability minus the GTA service tax credit.

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