Rcm on gta

This query is : Resolved

P.Harish (Querist)
Follow

16 October 2012 Dear Expert

Ser.notification No 26/2012 & No 30/2012 dt 20-6-12 is geting confused on the matter of Service of goods transport agency in relation to transportation of goods,Noti.No 26 says 25% & Noti.No 30 says 100%, now my question is that

Our is Pvt Ltd excisable unit , what would be tax liability in GTA case 0n 25% OR on 100% , Is RCM is applicable ,Please eleborate in details urgently-------.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

17 October 2012 N/N 30/2012 is for reverse charge mechanism
N/N 26/2012 is for abatement.

N/N 30/2012 specifies the services on which reverse charge is applicable and the percentage of liability to be borne by the service recipient.

N/N 26/2012 specifies the abatement (portion of taxable value exempt from tax).

Conclusion:
1. reverse charge mechanism is applicable on GTA.
2. 100% liability is to be borne by the service recipient.
3. While computing liability, 75% is exempt and liability will be calculated only on 25% of the invoice value.

Example:
Invoice amount Rs. 10,000/-
Reverse charge is applicable and accordingly 100% liability is to be borne by the service recipient.

Computation of liability:
Invoice Amount Rs. 10,000
Less: Abatement Rs. 7,500
Taxable Value Rs. 2,500

Service tax liability = 2,500*12.36% = Rs. 309

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

giriswar

Akhil Jain

Somnath Maiti

Shunmugavel Manohar

Subscribe Now

Rcm on gta

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Accountant

GST CONSULTANCY

CA Final

GST CONSULTANT

Senior Executive