Service tax on gta

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2015 Dear all
i have purchased goods but the supplier had paid paid rs. 2750 to transport agency and the supplier has also charged this 2750 in my purchase bill as freight outward,
my Query is.. who is liable to pay 25% service tax under RCM whether me and the supplier and who can avail cenvat credit for the same,

please reply soonest..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 March 2015 Your supplier has to pay service tax under RCM and claimed from you, then you are eligible for cenvat credit.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2015 DEAR SEETHARAMAN SIR
PLZ. GUIDE ME UNDER THIS ISSUE AS BELOW.

ONE OF MY CONTRACTEE HAS CHARGED 100% ST INSTEAD OF 50% ON FULL CONTRACT AMOUNT (INCLUDED MATERIALS) AND HE HAS ALSO NOT SHOWN MATERIALS PORTION SEPARATELY IN THE BILL. BUT THIS CONTRACT WAS UNDER RCM BECAUSE WE ARE COMPANY AND SERVICE PROVIDED BY PARTNERSHIP FIRM.PLZ. GUIDE ME MY COMPANY HAS PAID FULL 100% ST TO SERVICE PROVIDER. NOW DOES MY COMPANY LIABLE TO AVAIL 100% ST INPUT PAID TO CONTRCTEE

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 March 2015 Under RCM you are liable to pay 50% service tax. You can avail 100% input credit only if you pay 50% under RCM. Ask your partnership firm(contractor not contractee) to get refund of 50% ST and pass it on to you.

Querist : Anonymous

Querist : Anonymous (Querist)

27 March 2015 DEAR SIR
SERVICE PROVIDER IS PARTNERSHIP FIRM AND SR IS COMPANY, THE SP HAD CHARGED 100% ST ON TOTAL CONTACT VALUE UNDER RCM BUT MISTAKENLY THE SR HAD PAID THIS 100% ST TO SP. NOW MY QUERY IS. CAN SR AVAIL 100% ST PAID TO SP.

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