Reverse Charge Mechanism in Case of Transportors

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2010 I have a Partnership firm....in whose P&L a/c expenditure of freight on purchase is also shown... which amounts to Rs.5lac - 9lac.

I know that being a p'ship firm liability of service tax falls on the firm under REVERSE CHARGE MECHANISM..
But my question is whether the firm needs to register and pay service tax even though my value of freight is less than Rs.9lac and Rs.10 lac respectively..

And if yes brief particulars of provision and sections to be also given...

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)

25 April 2010 THIS IS CASE OF SERVICE RECEIVER IN WHICH NO BASIC EXEMPTION IS ALLOWED

kartik_somu

kartik_somu (Expert)

25 April 2010 Normally, the ‘person’ who provides the taxable service on receipt of service charges is responsible for paying the Service Tax to the Government (Sec.68 (1) of the Act). the receiver of the Services is responsible for the payment of Service
tax For the taxable services provided by a Goods Transport Agency for transport of
goods by road, the person who pays or is liable to pay freight is liable to pay
Service Tax , if the consignor or consignee falls under any of the seven categories viz. (a) a factory (b) a company (c) a corporation (d) a society (e) a co-operative society (f) a registered dealer of excisable goods (g) a body corporate or a partnership firm[ Refer: Sec. 68(2) of the Act read with Rule 2(d) of the Service Tax Rules, 1994.]

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