Service tax- reverse charge on gta
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 December 2012
In case of REVERSE CHARGE,
Can abatement be claimed by the service receiver in case of GTA service i.e. pay 12.36% on 25% of taxable value, if service provider is claiming cenvat credit of inputs????
In case of REVERSE CHARGE,
Can abatement be claimed by the service receiver in case of GTA service i.e. pay 12.36% on 25% of taxable value, if service provider is claiming cenvat credit of inputs????
12 December 2012
If service provider is getting cenvat credit then service receiver is not eligible for abatement
12 December 2012
condition that CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004. (See Notification No. 26/2012-ST dated 20.06.2012)
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 December 2012
Thks.
Some more queries :
1.In case of Reverse Charge, if service tax ia collected and paid by the ssrvice provider then is the service receiver liable to pay it again.
For eg : If the Service provider- Advocate has given the bill applying service tax. Now is the service receipient liable to pay service tax again under reverse charge.
2. Is appointment of catering service considered as Works contract ( for reverse charge)
Some more queries :
1.In case of Reverse Charge, if service tax ia collected and paid by the ssrvice provider then is the service receiver liable to pay it again.
For eg : If the Service provider- Advocate has given the bill applying service tax. Now is the service receipient liable to pay service tax again under reverse charge.
2. Is appointment of catering service considered as Works contract ( for reverse charge)
25 July 2025
Let's break down your queries one by one regarding **service tax reverse charge on GTA and related issues**:
---
### 1. **Abatement on GTA services under Reverse Charge**
* When the **service receiver pays service tax under reverse charge on GTA (Goods Transport Agency) service**, **abatement is allowed only if the service provider is not claiming CENVAT credit** on inputs, capital goods, or input services related to the service.
* **If the service provider is claiming CENVAT credit, then the service receiver is NOT eligible to claim abatement.**
This is based on **Notification No. 26/2012-ST dated 20.06.2012**, which states the abatement condition as:
> *"CENVAT credit on inputs, capital goods, and input services, used for providing the taxable service, has NOT been taken under the provisions of the CENVAT Credit Rules, 2004."*
---
### 2. **If service provider charges and pays service tax, does service receiver need to pay again under reverse charge?**
* **No**, the service receiver is **not liable to pay service tax again** if the service provider has already charged and paid service tax on the invoice.
* Under reverse charge, **liability to pay service tax lies with the service receiver ONLY when the service provider has not paid service tax**.
* For example, if an advocate charges service tax on their invoice, then the recipient is not required to pay tax again under reverse charge.
---
### 3. **Is appointment of catering service considered as Works Contract for reverse charge?**
* **No**, catering services are **NOT considered works contract services**.
* Works contract generally relates to construction, repair, maintenance, or renovation of buildings or structures.
* Catering services have their own service code and taxation rules and are **not covered under works contract for reverse charge purposes**.
---
### Summary Table:
| Query | Answer |
| -------------------------------------------------- | ------------------------------------------------ |
| Abatement allowed on GTA under reverse charge? | Yes, only if provider NOT claiming CENVAT credit |
| Provider pays tax on invoice under reverse charge? | Receiver NOT liable to pay again |
| Catering service classified as works contract? | No |
---
If you want, I can help you with the relevant notification links or draft explanatory notes for your records. Would you like that?
---
### 1. **Abatement on GTA services under Reverse Charge**
* When the **service receiver pays service tax under reverse charge on GTA (Goods Transport Agency) service**, **abatement is allowed only if the service provider is not claiming CENVAT credit** on inputs, capital goods, or input services related to the service.
* **If the service provider is claiming CENVAT credit, then the service receiver is NOT eligible to claim abatement.**
This is based on **Notification No. 26/2012-ST dated 20.06.2012**, which states the abatement condition as:
> *"CENVAT credit on inputs, capital goods, and input services, used for providing the taxable service, has NOT been taken under the provisions of the CENVAT Credit Rules, 2004."*
---
### 2. **If service provider charges and pays service tax, does service receiver need to pay again under reverse charge?**
* **No**, the service receiver is **not liable to pay service tax again** if the service provider has already charged and paid service tax on the invoice.
* Under reverse charge, **liability to pay service tax lies with the service receiver ONLY when the service provider has not paid service tax**.
* For example, if an advocate charges service tax on their invoice, then the recipient is not required to pay tax again under reverse charge.
---
### 3. **Is appointment of catering service considered as Works Contract for reverse charge?**
* **No**, catering services are **NOT considered works contract services**.
* Works contract generally relates to construction, repair, maintenance, or renovation of buildings or structures.
* Catering services have their own service code and taxation rules and are **not covered under works contract for reverse charge purposes**.
---
### Summary Table:
| Query | Answer |
| -------------------------------------------------- | ------------------------------------------------ |
| Abatement allowed on GTA under reverse charge? | Yes, only if provider NOT claiming CENVAT credit |
| Provider pays tax on invoice under reverse charge? | Receiver NOT liable to pay again |
| Catering service classified as works contract? | No |
---
If you want, I can help you with the relevant notification links or draft explanatory notes for your records. Would you like that?
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