Service tax liability

This query is : Resolved

CA Parul Saxena (Querist)
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15 November 2013 Our co.is receiving transport services from A Ltd.say for Rs.1000 in this case co.is supposed to pay service tax under reverse charge mechanism and this Freight amount is revoered from B Ltd.our customer as Rs.1200 so on which amiut co.is supposed to pay service tax on Rs.1000 or rs.1200

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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15 November 2013 The Service Tax is supposed be paid by the service recipient. GTA with proper consignment note is received by A Ltd. A Ltd. will pay service tax on the bill received from GTA Rs.1000/-. The freight recovered from B Ltd. will not be treated as GTA receipt as no consignment note was issued. If the service is taxable then it will be under the head business support service,

CA Parul Saxena

CA Parul Saxena (Querist)
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15 November 2013 Our co.is receiving service from A ltd.then why A ltd.will pay tax co.is service receiver then co. is supposed to pay

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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19 November 2013 Sorry - misread your company as A Ltd. Your company will pay GTA as service recipient and the freight recovered from the other company B Ltd. will not be treated as GTA receipt.

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