Gta

As per the Service Tax Act in case of GTA the service tax is payable by the Service Receiver and TDS in not applicable in case of Freight Charges if the same provides the PAN Number.

If the PAN is not provided TDS @ 20% is applicable

In this case no need to charge service tax under reverse charge mechanism and no need to deduct tds

Hi 

Please answer the following questions

1. Are you in receipt of consignment note from GTA Service provider?

2. Whether invoice is in your name?

3. Is there any payment upto Rs. 1500 per truck ?

If answer to above question is

1. Yes     2. Yes     3. No

Then, you are liable to pay service tax under Reverse Charge Mechanism.

Doing so, if payment is made on or after 01.06.2015, you will have to pay service tax @ 14%.

However, if you get invoice in the name of your customer WHO IS AN INDIVIDUAL, reverse charge would not be applicable and GTA Service provider would levy service tax in his invoice and if invoice is issued before 01.06.2015, ST Rate will be 12.36%. Doing so, you will save 1.64%

Moreover, in the second case there are chances that GTA Service provider is not registered under service tax, You can save entire service tax because he will not levy it in the invoice.

Reverse Charge provisions are applicable provided transporter issues Consignment note or any other document. TDS u/s 194C will not be deducted if transporter furnishes PAN, otherwise 20% tds is required to be deducted u/s 206AA.