Gta

Service Tax (Legacy) 764 views 2 replies

saurav

abc

43 Points Posted on 16 July 2012

Sir,

I have a query regarding Goods transport Services.
It is like there is a partnership firm, manufacturing industrial goods.
For the P.Y.2007-08, It has paid service tax on some of the bills to the transporter, while there were no service tax levied on the others.

It has received a notice from the ST department regarding non-payment of S.Tax. for P.Y. 2007-08.

The matter was like the firm has made the payment of S.T. to the transport agency instead of the government unknowingly.
The transporter has already deposited the amount to the government, but the department is asking the firm to deposit the same along with interest all again.

Also, whether S.Tax was payable by the firm i.e. the Service receiver (P.Y.2007-08). Whether the firm is liable to pay S.T. for the year 2007-08, i mean whether by that time GTA services came into scene or not.

Also, if the firm is required to pay S.T. now, whether it can take the credit of the same. And the amount already paid by the firm to the transporter is required to be deposited again ?

Pl. help me regarding the same at the earliest.

Thanks & regards,
Saurav

Replies (2)

Ajit kumar Dubey

Taxation Manager

637 Points Posted on 17 July 2012

Whether at the time of making payment to the transporter, service tax was separately charged by them. If yes then you are not liable to pay any tax on the same. But as per the service tax rules the person who is paying freight is liable to pay service tax on GTA service, provided that its a factory which in your case you are. So the view of the department is correct, but you can build your case on the ground that on a single transaction there cannot be multiple taxes.