GTA SERVICE TAX

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CA Sudhir Halakhandi

PRACTICING CHARTERED ACCOUNTANT

13401 Points Posted on 03 January 2009

With respect to Service tax on Goods Transport Agency, the Liability of payment of service tax is given to three parties i.e. consignor, consignee or the transport company. This is very cumbersome provision and in most of the cases the trade and industry is paying service tax through GTA even though they are from the Seven specified categories.

Is there any possibility of demand of tax if the same is paid through GTA though the liability of payment is of the Consignor or consignee?

-CA SUDHIR HALAKHANDI

Replies (6)

CA CS Akashdeep Singh

Practicing CA

1394 Points Posted on 03 January 2009

No , consignor or consignee could not transfer their liability to GTA, if they are specified.

Definately, there is possibility of demand of tax if the same is paid through GTA though the liability of payment is of the Consignor or consignee.

rutambh

.....

217 Points Posted on 03 January 2009

GTA service tax still confusion that service tax to be paid on 25% or 100%.

1.Who should be pay 100%?

2.Who should be pay 25%?

Any condition that if service tax CENVAT credit paid on express cargo, currier , tel. bill …etc avail then GTA service tax credit must be paid on 100%?

Any one knows regarding this issue pl reply it will be useful to lot of members.

Pl brief in detail so can convince to authority.

Thanks

Kirti

rutambh

.....

217 Points Posted on 03 January 2009

GTA service tax still confusion that service tax to be paid on 25% or 100%.

1.Who should be pay 100%?

2.Who should be pay 25%?

Any condition that if service tax CENVAT credit paid on express cargo, currier , tel. bill …etc avail then GTA service tax credit must be paid on 100%?

Any one knows regarding this issue pl reply it will be useful to lot of members.

Pl brief in detail so can convince to authority.

Thanks

Kirti

Ritesh

CA Final

326 Points Posted on 04 January 2009

Hi, Mr.Rutambh

In GTA,Service Tax is paid by Service Receiver who pays Freight & also falling within the categories of 7 Specified persons.. Otherwise it is paid by Service Provider..

Service Tax will be charged @ 3.09%.Service Provider can't take the benefit of Cenvat Credit. Earlier Service provider had an option to take Cenvat Credit & Service Tax would have been charged @ 12.36%, but now with an amendment made, such option is no longer available & hence Service Tax has to be charged @ 3.09% only.

For Service Receiver, It is an Input Service & hence he can take the credit of Service Tax so paid by him on GTA Services apart from other Cenvat Credit available to him. But Service Provider can't take Cenvat credit anymore...

Ritesh

CA Final

326 Points Posted on 04 January 2009

Hi Mr. Sudhir Halakhandi,

I am in complete agreement wid Mr. Akashdeep.... Pls correct me if i am wrong....

PARDEEP KUMAR AGGARWAL

PARTNER

286 Points Posted on 01 June 2010

Clarify me the situation where The GTA owner is charging Service Tax on their invoices & the recepient is making payments to the GTA owner including Service Tax. In such a case, who will be liable to pay service tax.