Service tax registration
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 November 2012
Dear All,
My question is that we are private limited company and availed service of Goods Transportation. transport has charged freight only. the aggregate amount of such service are 6,00,000/- per annum .
should we get service tax registration or not,if yes please provide related section and rule in which state clear
My question is that we are private limited company and availed service of Goods Transportation. transport has charged freight only. the aggregate amount of such service are 6,00,000/- per annum .
should we get service tax registration or not,if yes please provide related section and rule in which state clear
Viral Vora
(Expert)
22 November 2012
As per clause (2) of notification 30/2012 dt 20/06/2012 service tax is payable by recepient of service. i.e under reverse charge mechanism.
It should be noted that no exemption limit is applicable in cases of reverse charge mechanism.
Hence Pvt Ltd co should get service tax registration and pay service tax accordingly.
Notification NO.26/2012 dt 20.06.2012 provides the abatement to GTA @ 75%. Hence only 25% amount of Gross Amount charged by transporter is taxable.
Also Value based exemptions are available. Read item No.21 of Notification No. 25/2012 dt 20.06.2012
It should be noted that no exemption limit is applicable in cases of reverse charge mechanism.
Hence Pvt Ltd co should get service tax registration and pay service tax accordingly.
Notification NO.26/2012 dt 20.06.2012 provides the abatement to GTA @ 75%. Hence only 25% amount of Gross Amount charged by transporter is taxable.
Also Value based exemptions are available. Read item No.21 of Notification No. 25/2012 dt 20.06.2012
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