Service tax reverse charges on gta
This query is : Resolved
23 December 2013
Dear sir,
We have a proprietorship firm. we are a taking the service from goods transport agency and the transporter is not charged the service tax in their billing. thereby a question is that:
Q. we are liable to pay the service tax in case of proprietorship firm or only liable in case of corporate. (partnership, ltd & pvt ltd)
pls explain along with detail of services, where we liable for service tax payment against reverse charges.
We have a proprietorship firm. we are a taking the service from goods transport agency and the transporter is not charged the service tax in their billing. thereby a question is that:
Q. we are liable to pay the service tax in case of proprietorship firm or only liable in case of corporate. (partnership, ltd & pvt ltd)
pls explain along with detail of services, where we liable for service tax payment against reverse charges.
23 December 2013
1)Tax when consignment note issued. Simple transport of goods service (without issue of consignment note) is not a GTA service.
2)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).
3)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.
4)GTA is liable to pay service tax if (a) person liable to pay freight is individual or HUF (b) Person liable to ay freight is outside taxable territory (like J&K, Nepal, Bhutan, Bangla Desh, Pakistan etc.).
2)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).
3)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.
4)GTA is liable to pay service tax if (a) person liable to pay freight is individual or HUF (b) Person liable to ay freight is outside taxable territory (like J&K, Nepal, Bhutan, Bangla Desh, Pakistan etc.).
24 December 2013
Pls clarify point no. 3:-
tax on 25% would be charged by the transporter and service receiver can avail cenvat credit, whether he charged in his bill. so why service receiver should get certificate from transporter that he has not availed cenvat credit.
and the main issue that if the transporter is not charged the service tax in his bill. so that we are liable to pay the tax. because we are register in a proprietorship firm?
tax on 25% would be charged by the transporter and service receiver can avail cenvat credit, whether he charged in his bill. so why service receiver should get certificate from transporter that he has not availed cenvat credit.
and the main issue that if the transporter is not charged the service tax in his bill. so that we are liable to pay the tax. because we are register in a proprietorship firm?
24 December 2013
Pls clarify point no. 3:-
tax on 25% would be charged by the transporter and service receiver can avail cenvat credit, whether he charged in his bill. so why service receiver should get certificate from transporter that he has not availed cenvat credit.
and the main issue that if the transporter is not charged the service tax in his bill. so that we are liable to pay the tax. because we are register in a proprietorship firm?
tax on 25% would be charged by the transporter and service receiver can avail cenvat credit, whether he charged in his bill. so why service receiver should get certificate from transporter that he has not availed cenvat credit.
and the main issue that if the transporter is not charged the service tax in his bill. so that we are liable to pay the tax. because we are register in a proprietorship firm?
24 December 2013
Actually abatement is available if cenvat credit on inputs,capital goods, and input services used for providing taxable services has not been taken under cenvat credit rools 2004
.
.
so effective tax rate is 25% on 12.36 which is 3.09% on total frieght only if gta not availed cenvat credit on his inputs
.
.
.
So it is mandatory to obtain a certificate from GTA to the effect that he has not availed cenvat credits for providing taxable service ,if this certificate is not available ,,benifit of abatement cannot be taken and DEMAND may arise for balance 75%
.
.
.
.
however that is why it is advisable to GTA to preprint this declaration its invoice..it is also allowed
.
.
so effective tax rate is 25% on 12.36 which is 3.09% on total frieght only if gta not availed cenvat credit on his inputs
.
.
.
So it is mandatory to obtain a certificate from GTA to the effect that he has not availed cenvat credits for providing taxable service ,if this certificate is not available ,,benifit of abatement cannot be taken and DEMAND may arise for balance 75%
.
.
.
.
however that is why it is advisable to GTA to preprint this declaration its invoice..it is also allowed
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
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- Taxability of credit in canara bank ET & T section (NRO)
- Difff in ais receipts and gst turnover
- Banking Related Issue
- TDS on rent received on hardship compensation being rent on redevelopment of building
- NRI INSURANCE ADVISOR
- Traces submitting correction statement error
- Loss of interest in PF transfer from EPFO to Trust
- CLOSING STOCK QUERY
- F&O reporting in ITR
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
