Partnership Firm to pay service tax

This query is : Resolved 

16 December 2009

Act calls for partnership firm to pay service tax after an abatement of 75% for availing transportation by road wen per consignment is 750 or contract value is 1500.
wat to do wen the service provider is not covered under service tax?
wen the actual liab to deduct and pay arises for the partnership firm?
does the firm has to pay even wen the provider is not covered under ST?

Bishwajeet (Expert)
16 December 2009

to pay service tax is onus of provider(service).

16 December 2009

That without baffling, it is simple to note that in service tax provisions primarily, the person who provides taxable service is liable to get registration and pay service tax but in certain cases, the Government is empowered to collect such service tax instead of service provider, from other person in reverse mechanism.

The GTA service is one those in which though the Goods Transport Agency(GTA) is the service provider but the Government being empowered shifted liability to pay tax upon the user. Means who use the GTA service have been made responsible to get registration and pay service tax. However such user’s category has been defined under Rule 2(d)(v) of the Service Tax Rule,1994. In this category partnership firm duly registered has been made liable to pay tax.

In this provision, the GTA is absolutely free from service tax net and comes into net only when provides service other then user’s category as defined under Rule 2(d)(v) of the Service Tax Rule,1994. So introspect your query in the above provisions.

For further query, feel free to write (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana).

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