LIABILITY TO PAY TAX ON SERVICE RECIEVER

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This query is : Resolved

GIRISH KUMAR DUNDLODIA (Querist)

06 May 2009 A CO.IS PAYING TRANSPORTATION CHARGES TO A FIRM WHICH IS UNREGISTERED UNDER SERVICE TAX. BUT THE SERVICE RECIEVER IS REGISTERED CO. SO IN THIS CASE DOES THE CO. HAVE TO PAY SERVICE TAX AND AT WHAT RATE? AND PLZ MENTION WHICH ARE THE OTHER SERVICES ON WHICH SERVICE RECIEVER HAS TO PAY TAX IF NOT CHARGED BY SERVICE PROVIDER.....

Rajesh Kumar

Rajesh Kumar (Expert)

07 May 2009 When both consignor & consignee is liable tp pay ST on GTA, the person who pays the freight, pays the Tax.

CA. Neha Gupta

CA. Neha Gupta (Expert)

07 May 2009 In case of GTA Service, Service Tax is to be paid by Service Receiver and not by service provider. So in your case also, service tax is to be paid by company if it is making payment of freight. Service Tax on GTA is payable @ 10.3% (W.e.f. 24.2.09)and also abatement of 75% is available provided on the condition that GTA has not availed CENVAT Credit on input services and capital goods.

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