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 .
Suresh Ramaswamy
(Expert)
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.
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