Service tax applicablity on gta

Save Share

This query is : Resolved

b.sharma (Querist)
Follow

27 June 2012 D/sir
i have a proprietorship Business. I am paying Freight Approx. 40 Lac yearly for material purchase from Rajasthan,Gujrat etc.The Transporters are not charging Service Tax on GR .I have not Service tax Registration.Do I need to Registered from Service Tax for GTA.
The liability of Service tax on Transportation is my or Transporters.

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

27 June 2012 Under reverse charge mechanism, if the consignor or consignee is a) Any factory (factories act) b) any dealer in excisable goods (regd under excise act) c) any body corporate, d) any firm registered or not incldng association of persons, e) any society established under any law are liable to pay the service tax after availing 75% abatement. sole proprietor is not covered in the notification.

Dayal

Dayal (Expert)
Follow

27 June 2012 Se 68 prescribes for person liable to pay service tax, sub section 2 states category of person laible to pay service tax a recipient. Which covers person liable to pay freight is responsible for paying ser tax. The manner of payment is as clarified by RK

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

28 June 2012 Thanks Mr Dayal for your support.

r.k rengaraj

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

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!