Tds and books of account

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This query is : Resolved

CA Pankaj Kumar Sharma (Querist)

26 May 2015 Fact of Case

Mr. X is Individual, who does not have any Commercial Vehicle for providing GTA service, but he hires same from others individuals and provides the GTA Services to Body Corporates.

Issue- 1, Whether Mr. X shall be treated GTA under Goods Transport Agency under Service Tax, if Yes then Who is liable to pay Service Tax. Mr. X himself as Service Provider or Receiver of service under reverse charge ?

Issue-2 , What be the turnover for the purpose of getting registration under service tax if Income from other than Body corporate does not exceeds Rs 900000/-.

Issue-3, The Basis of freight is RsXX/- per quanitity shifted or delivered. Will be covered under GTA Services.

Under Income Tax
Issue-4 - Whether He is eligible to compute his tax liability under section 44AE ?
Issue-5, Wether he liable to deduct TDS for payment made for hiring Vehicles ?

Amol S Joglekar

Amol S Joglekar (Expert)

26 May 2015 Issue 1 : For the purpose of service tax, this amounts to fall under GTA. Mr. X has the choice either to pay at his own or in agreement with the Body Corporate under reverse charge.

Issue 2 : Voluntary registration may be sought for

Issue 3 : once answer to issue 1 is affirmative, i could not understand the aim of issue 3. can you please elaborate?

Issue 4 : 44AE is not applicable as Mr X does not own the vehicle. However he may opt for 44AD

Issue 5:Being individual, he is liable to deduct TDS from the subsequent year of the year in which his accounts are audited...TAX audit.

CA Pankaj Kumar Sharma

CA Pankaj Kumar Sharma (Querist)

02 June 2015 Thanks Sir.

For issue 3: Mean to say that Freight is payable on pice rate.

Another issue arise from discussion from my groups and clarify me on the same:-

" Same Individual provide services to Logistics Company, (Safe Xpress, Om Logistics), Still this shall be classified under GTA or Bussiness Support Service, If under BSA then Reverse charge not applicable and Can avail other benefits of GTA.

Amol S Joglekar

Amol S Joglekar (Expert)

04 June 2015 It falls under GTA.

With the inclusion of negative list and mega exemption, however, the type of service per se has lost its importance.

CA Pankaj Kumar Sharma

CA Pankaj Kumar Sharma (Querist)

16 June 2015 Thank You very much for assisting me in understanding the provision.

Amol S Joglekar

Amol S Joglekar (Expert)

19 June 2015 You are most welcome.
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