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Gta services

Nutan Kumar (Article assistant) (58 Points)

04 July 2015

Respected Sir / madams

A research center registered as a society under society act. Assesee is receiving a GTA & CAB services from service provider. Whether society is liable to pay Service tax under RCM.. ??? Can you provide any notification..?

Thank you

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4 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 04 July 2015

As I understand, since the service reciever is not a body corporate, RCM is not applicable.

Kuldipsinh Jadeja (Job) (357 Points)
Replied 05 July 2015

Dear Poornima,

I would like to add here that you have mentioned your point with reference to Partial Reverse Charge Mechanism as per Notification No. 30/2012-ST dated 20-06-2012 which is correct for Renting of Motor Vehicle since Assessee is not a Body Corporate & hence service receiver is not liable to service tax. However as per rule 2(1)(d) of Service Tax Rules, 1994, in case of GTA, if the person liable to freight is registered society than yes service receiver would be liable to pay service tax & if society is liable to pay freight than in such case service provider i.e. GTA would be liable to pay service tax.

1 Like

Arif Ali (Apt Co Advisory) (1230 Points)
Replied 06 July 2015

Yes Agreed with Mr. Jadeja,

Your society is laibel to pay service tax under RCM on fright paid to GTA

Kuldipsinh Jadeja (Job) (357 Points)
Replied 06 July 2015

Originally posted by : Kuldipsinh Jadeja
	Dear Poornima, I would like to add here that you have mentioned your point with reference to Partial Reverse Charge Mechanism as per Notification No. 30/2012-ST dated 20-06-2012 which is correct for Renting of Motor Vehicle since Assessee is not a Body Corporate & hence service receiver is not liable to service tax. However as per rule 2(1)(d) of Service Tax Rules, 1994, in case of GTA, if the person liable to freight is registered society than yes service receiver would be liable to pay service tax & if society is liable to pay freight than in such case service provider i.e. GTA would be liable to pay service tax.