Reverse charges - service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2013 My Client is individual running business in proprietorship. and paying freight to transport co. and transport company is also individual proprietorship. so my client is liable to pay Reverse Charges - Service Tax for freight expense ?. my cliennt is not registered any factory act.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

09 October 2013 GTA is liable to pay service tax if

(a) person liable to pay freight is individual or HUF

(b) Person liable to ay freight is outside taxable territory
(like J&K, Nepal, Bhutan, Bangla Desh, Pakistan etc.).
.
.
And hence individual not liable to pay any service tax under reverse charge it is the duty of GTA to discharge the same

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2013 as per your answer my client is not liable to pay any service tax. but transport agency not charging service tax on freight. so is there any problem when both transport and my client not paying service tax ?

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

09 October 2013 It is the duty of GTA to pay service tax on GTA frieght,,Hence no problem with individual service receiver,...if any problem arises it will be held with your GTA only for his failure to deposit service tax

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok