service tax resposibility
This query is : Resolved
21 May 2017
sir/madam.
we are receiver of services of goods trandport and in their service tax bill , they charged service tax @15%.
now i want to know our respodibility related to service tax as a service receiver.
21 May 2017
Read GTA reverse charge rule
25 July 2025
Hey! Here’s a clear explanation about your **Service Tax responsibility as a service receiver of Goods Transport Services (GTA):**
---
### 1. **Who pays Service Tax on Goods Transport Services?**
* For **Goods Transport Agency (GTA) services**, the Service Tax law says the **service receiver is liable to pay Service Tax under Reverse Charge Mechanism (RCM)** in certain cases.
* However, this applies **only if the service receiver is a “specified person”** (like a company, firm, body corporate, etc.).
* If the receiver is an **individual or HUF (Hindu Undivided Family)**, **RCM is generally not applicable** for GTA services.
---
### 2. **What about the 15% Service Tax charged by the transporter?**
* The **current service tax rate for GTA services is 5% (plus applicable cess)**, **not 15%**.
* If the transporter has charged **15% service tax**, it is likely including other services or it might be an error.
* Also, **if the transporter charges service tax under normal charge, you (service receiver) don’t pay again under RCM**.
---
### 3. **Your responsibility as a service receiver**
* If your business is a **specified person**, you must:
* Pay Service Tax on GTA service under Reverse Charge, directly to the government (if transporter did NOT charge Service Tax).
* Obtain Service Tax Registration if you don’t have one.
* File Service Tax returns declaring the tax paid under RCM.
* If the transporter has already charged you Service Tax on their invoice (i.e., charged you 5% service tax properly), then:
* You **do not pay tax again under RCM** on that service.
* You **cannot claim Input Credit on such tax paid under RCM**, since GTA service under RCM does not allow credit.
---
### 4. **In brief:**
| Scenario | Your Responsibility |
| ------------------------------------- | ----------------------------------------- |
| Transporter charges 5% ST properly | Pay transporter, no RCM tax to pay by you |
| Transporter does NOT charge ST | Pay ST under RCM directly |
| Transporter charges 15% ST (unlikely) | Verify details & clarify charges |
---
If you want, I can help you check if your business is liable under RCM and guide you on registration and payment procedures. Would you like that?
---
### 1. **Who pays Service Tax on Goods Transport Services?**
* For **Goods Transport Agency (GTA) services**, the Service Tax law says the **service receiver is liable to pay Service Tax under Reverse Charge Mechanism (RCM)** in certain cases.
* However, this applies **only if the service receiver is a “specified person”** (like a company, firm, body corporate, etc.).
* If the receiver is an **individual or HUF (Hindu Undivided Family)**, **RCM is generally not applicable** for GTA services.
---
### 2. **What about the 15% Service Tax charged by the transporter?**
* The **current service tax rate for GTA services is 5% (plus applicable cess)**, **not 15%**.
* If the transporter has charged **15% service tax**, it is likely including other services or it might be an error.
* Also, **if the transporter charges service tax under normal charge, you (service receiver) don’t pay again under RCM**.
---
### 3. **Your responsibility as a service receiver**
* If your business is a **specified person**, you must:
* Pay Service Tax on GTA service under Reverse Charge, directly to the government (if transporter did NOT charge Service Tax).
* Obtain Service Tax Registration if you don’t have one.
* File Service Tax returns declaring the tax paid under RCM.
* If the transporter has already charged you Service Tax on their invoice (i.e., charged you 5% service tax properly), then:
* You **do not pay tax again under RCM** on that service.
* You **cannot claim Input Credit on such tax paid under RCM**, since GTA service under RCM does not allow credit.
---
### 4. **In brief:**
| Scenario | Your Responsibility |
| ------------------------------------- | ----------------------------------------- |
| Transporter charges 5% ST properly | Pay transporter, no RCM tax to pay by you |
| Transporter does NOT charge ST | Pay ST under RCM directly |
| Transporter charges 15% ST (unlikely) | Verify details & clarify charges |
---
If you want, I can help you check if your business is liable under RCM and guide you on registration and payment procedures. Would you like that?
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
- Money lost in stock market related scam
- Reminder of Dues under the WBGST Act 17
- 80ccd(2) deduction
- Merger related taxation
- Merger issue
- ITR3
- FNO loss set off with STCG
- Hash value error indicated whilst validating itr 2 online
- QUERY RELATING UPDTAED RETURN FILING OF TRUST UNDER AOP
- NRI TAX RATE.as applicable on NRO Saving Bank a/c & FD interest
- Got refund though there is additional tax liability
- EPF Withdrawal Where to show in ITR2
- GST ON SOLAR POWER PANELS
- 54 F disallowance presentation in ITR 2
- Regarding ITC show in Electronic Credit Reversal and Re-claimed Statement.
- TDS on disallowance and reporting
- Requirement of MGT-14 for resolution passed at EGM for appointment of auditor
- ICWAI-Final
- Gratuity Fund Audit & ITR
- RCM gst liability and return query
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
