Reverse charge on gta
This query is : Open
07 June 2013
A pvt. ltd. company sells goods to another company and charged Rs 40000 as frieght. However it actually pays Rs 10000 to transportation comp.
while paying service tax they calculate the tax on 40000. On enquiry they told that they considered themself as a service provider that is why they are paying tax on 40000 not 10000. Are they correct? or they should pay tax on 10000 as reverse charge
while paying service tax they calculate the tax on 40000. On enquiry they told that they considered themself as a service provider that is why they are paying tax on 40000 not 10000. Are they correct? or they should pay tax on 10000 as reverse charge
08 June 2013
Dear Vivek,
As per my understanding, the company is required to pay service tax on 40000 as out services and also required to pay Rs. 10000/- service tax on freight paid under reverse charge. However, the company may be eligible to CENVAT credit on Rs. 10000/- paid under reverse charge subject to the provisions of CCR 2004.
As per my understanding, the company is required to pay service tax on 40000 as out services and also required to pay Rs. 10000/- service tax on freight paid under reverse charge. However, the company may be eligible to CENVAT credit on Rs. 10000/- paid under reverse charge subject to the provisions of CCR 2004.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Minimum tax payable to file Updated return
- Dep. as per companies act
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Applicability of GST on Salary Reimbursement Component
- Renovation exp. in flat by family member
- UDIN ISSUE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- CHECK RELATED
- Gst registered proprietorship firm
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
08 September 2026
Semi-Qualified Assitant
Subrahmanyam & Sivudu CA Firm
Hyderabad
CA Inter
View Details
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
CCI
Pro
CAclubindia
