Reverse charge

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Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 IN CASE OF REVERSE CHARGE WHETHER THE SERVICE PROVIDER WILL INCLUDE SERVICE TAX IN ITS BILL OR NOT ?

Nitin Bhuta

Nitin Bhuta (Expert)

14 June 2014 No service tax is not required to be included but it should be notified in the invoice about the service tax obligation under reverse mechanism.

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 thanks.................................

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 sir kindly conform me that the rate of service tax on goods carrier are 3.09%

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2014 kindly reply ........................

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

22 July 2025 Sure! Here’s a quick clarification on your points about Reverse Charge and service tax rates on goods carriers:

1. Service Tax Inclusion in Bill under Reverse Charge:
When reverse charge applies, the service provider does NOT charge or include service tax in their invoice.

Instead, the service recipient is liable to pay service tax directly to the government.

However, the service provider’s invoice should clearly mention that the tax liability is on the recipient under reverse charge.

2. Service Tax Rate on Goods Transport Agency (GTA) Services:
The effective service tax rate on GTA services under reverse charge is 3.09%.

This is because GTA services are taxed at 6%, but under reverse charge only 50% of the tax is payable by the recipient.

Calculation:
6% service tax × 50% liability = 3%
Plus applicable education cess and secondary and higher education cess, making it approximately 3.09% total.

Summary:
Point Details
Service provider charges tax? No, under reverse charge
Invoice statement Must mention reverse charge liability
Service tax rate on GTA 3.09% (half of 6% plus cesses)

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