Service tax on transport
This query is : Resolved
19 October 2013
If a transporter are not registered in service tax and not mention in bill who will liable for service tax .
19 October 2013
GTA is covered under Reverse Charge Mechanism. As per the latest provisions, service recipients are liable for payment of service tax irrespective of whether the service provider is registered or not. Threshold level of exemption not applicable.
Hence if the GTA service recipient receives consignment of more than Rs.750/- then he is liable to pay Service Tax @ 12.36% after availing of 75% abatement i.e.on 25% of the freight bill.
To be liable the Service Provider has to issue a Consignment Note and if such Consignment Note is issued, the recipient is liable to pay the Service Tax. Since GTA payments are not eligible for Input Credit, the ST need not be shown separately in the Consignment Note or whose liability it is to pay the same.
Hence the service recipient is liable for payment of service tax.
Hence if the GTA service recipient receives consignment of more than Rs.750/- then he is liable to pay Service Tax @ 12.36% after availing of 75% abatement i.e.on 25% of the freight bill.
To be liable the Service Provider has to issue a Consignment Note and if such Consignment Note is issued, the recipient is liable to pay the Service Tax. Since GTA payments are not eligible for Input Credit, the ST need not be shown separately in the Consignment Note or whose liability it is to pay the same.
Hence the service recipient is liable for payment of service tax.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Putting a heading on received mail
- Section 50-fixed asset-->building ceases to exist
- Withdrawal in cash from partners capital account by partner
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Tds on commission charges
- TDS on TRUST
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
