Service tax on gta


This query is : Resolved 

pro badge (Querist)
04 September 2014 Dear sir,

We are paying service tax on GTA OUR TRANSPOTER AGENCY IS A Propertior concern
We need to deduct service tax paid on his bill and need to pay balance amount?

Thanking you



04 September 2014 Dear Madhu,

No, service tax is not to be deducted from bill, percentage of GTA is applied on bill amount and deposited with govt., and the full amount of bill is to be paid to the transport agency (after deducting TDS, if applicable)

Example,

If bill amount is Rs.10,000
GTA will be Rs.309.
Transport agency payment will be Rs.10,000


madhu Reddypro badge (Querist)
05 September 2014 Dear sir,

1.If Suppose Bill Includes Service tax amount also and we have paid GTA 309/- to the Govt on the above Example ?

2. If Transporter Agency Charges service tax Extra we Need to Remit Including service tax ?

Thanking you



05 September 2014 Dear Madhu,

Case 1: If service tax in included in bill (not mentioned separately) then we need to do reverse calculation.

Example: Bill Rs. 10,000

GTA will be = 10,000 X 3.09 / 103.09

= Rs.300

Case 2: If service tax is charged separately in bill, then pay basic amount only to the agency and service tax (GTA) amount to Govt.

Hope this is clear to you now.



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