Service tax- reverse charge

This query is : Resolved

nitin (Querist)
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04 July 2013 transporter charges in his bill service tax 12.36%. what is transporters liability & receivers liability under reverse charge.

Ganeshbabu K

Ganeshbabu K (Expert)
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04 July 2013 1) Service by way of transportation of goods by road is in negative list – except services of Goods Transport Agency (GTA) and Courier Agency.

2)So in your case your service provider is GTA..we consider this as GTA only if consignment note issued by transporter.

3)Transport of passengers in stage carriage, metered taxis, radio taxi, auto rickshaw not taxable.

4)Transport of public in contract carriage is exempt, but transport in contract carriage for tourism, conducted tour, charter or hire is taxable.

5)Exempted Road Transport of passengers

(a)Transportation of students, faculty and staff of recognised educational institutions

Thanks & regards
Ganesh babu k

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Ganeshbabu K

Ganeshbabu K (Expert)
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04 July 2013 1) Person liable to freight is liable to pay service tax on GTA if he is body corporate, factory, registered dealer under Central excise, society, cooperative society, partnership firm (registered or not).

2)Tax on 25% if GTA does not avail Cenvat Credit – Hence service receiver should get certificate from him that he has not availed Cenvat credit.

3)Otherwise tax on 100% value.

Thanks & regards
Ganesh babu k

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