Service charges reverse mechanism

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This query is : Resolved

Vipin Kumar Sharma (Querist)

11 September 2012 Dear Sir

I want to know some thing on Service Tax,

We are pvt ltd co.
What is service charges reverse mechanism,

Is it applicable on us, we are already registerd with service tax for paying GTA, is their required for new registration with service tax.

We are receiving the service from transporter, eariler we were paying GTA on 25% of freight amount, what will be the new rule

can we avail the benifit of service tax which we have deposit on behalf of transporter

if we receive any bill from advocate or any consultancy service who will be liable the pay service tax, if we than from where we can recover that amount

Thanks

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)

12 September 2012 In respect of GTA services service tax in your case would still be payable by you, as per the new rules on 25% of the freight amount. Cenvat credit on transportation services can be availed for inward transportation of inputs/capital goods and outward transportation upto the place of removal.
Reverse charge is applicable also for legal services received from an individual or a firm of advocates, in which case you will have to discharge 100% of the service tax.

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