Service tax on goods transport agency

This query is : Resolved

Mukesh Kumar (Querist)
Follow

04 September 2013 Hi

We are receiving some Consignment note from GTA where Service Tax @ 3% has been charged by GTA

Whether in such cases we have to pay Service Tax under Reverse Charge Method

If there is any Circular or notification in this respect please write

Thanks

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

04 September 2013 Actually, the liability is now shifted from GTA to the person paying the Freight charges.

Please confirm whether your GTA is falling under Private or Public limited Company category.

Mukesh Kumar

Mukesh Kumar (Querist)
Follow

04 September 2013 Sir

It is private limited company

Mukesh Kumar

Mukesh Kumar (Querist)
Follow

04 September 2013 sir

it is private limited company

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

05 September 2013 Here, the audit query may arise. Since the liability of paying service tax is shifted from GTA to the party pays the freight amount, objection will arise. You have to prove that the GTA being a limited company he himself paid.

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