Rcm on gta service
This query is : Resolved
19 August 2013
If one Firm receive transport service, GTA engaged by manufacturer for delivery of goods produced by him, Consignment note issued by GTA on the name of Firm as consignee.But Firm is not paid Freight separately to transporter as the value of goods, inclusive of freight and paid to manufacturer.Is any S.T. livable under Reverse Charge to Firm on this transaction? If manufacturer bifurcated fright on Excise Invoice issued by him? or the manufacturer is liable to pay S.T. and take input credit on S.T. paid.
CA Suresh Jain
(Expert)
20 August 2013
1. case 1 where for the consignee price of goods is inclusive of freight. Freight neither charged separately nor paid to the GTA by consignee -- RCM applicable to consignee
2. case 2 where supplier shows the freight separately meaning thereby the freight to the GTA is paid by the consignor and not by consignee and hence consignee is not liable for RCM
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
2. case 2 where supplier shows the freight separately meaning thereby the freight to the GTA is paid by the consignor and not by consignee and hence consignee is not liable for RCM
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
20 August 2013
Thanks for your reply......
But if the amount of goods inclusive of freight and in P.O. mentioned it, then the consignor is liable to deliver goods up to the project/factory of the consignee & also, liable to pay freight? and also liable to pay S.T. as Service Receiver?
But if the amount of goods inclusive of freight and in P.O. mentioned it, then the consignor is liable to deliver goods up to the project/factory of the consignee & also, liable to pay freight? and also liable to pay S.T. as Service Receiver?
CA Suresh Jain
(Expert)
20 August 2013
Yes in the case where consigner is paying the freight to GTA he is liable for ST under RCM
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case
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