Liability trigger in case of Goods Transpot Agency

Service Tax (Legacy) 1169 views 5 replies

nehal

24 Points Posted on 29 June 2010

Hi friends,

I wanted to know at what point am I liable to deposit service tax in case of service received from Goods Transport Agency (GTA). Would it be:

1) Service rendered by GTA;

2) Invoice received from GTA ; or

3) When I make payment to GTA.

Thanks in advance

Replies (5)

Dilip Darji

392 Points Posted on 29 June 2010

The liability arises only when you make payment to Transporter.

attachment might come handy. though i think it is liable as soon as the payment is made. cause unless the payment iz made. i feel it should be liable whn service is rendered or else there can be a loop hole..i can book all the amount cr to party account into bad debt and pay him in black to avoid tax. Anyway update me on the same too.

Shyam Lal Naik

Service

6158 Points Posted on 29 June 2010

Service tax liability arises on receipt basis. GTA is no exception. In case of reverse charge, liability would arise only on payment.

Dilip Darji

392 Points Posted on 29 June 2010

Rule 6 of Service Tax Rules, 1994 provides "That the service Tax shall be paid to the credit of Central Govt.........in which the payments are received towards the vale of Taxable Services."

EKALABYA TALUKDAR

SERVICE TAX CONSULTANT

666 Points Posted on 02 July 2010

Rule 2.

(1)	In these rules, unless the context otherwise requires,-
	(d)	"Person liable for paying service tax" means,-
	(v)	In relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is,-
	(a)	any factory registered under or governed by the Factories Act, 1948 (63 of 1948)
	(b)	any company formed or registered under the Companies Act, 1956 (1 of 1956)
	(c)	any corporation established by or under any law
	(d)	any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India
	(e)	any co-operative society established by or under any law
	(f)	any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder or
	(g)	any body corporate established, or a partnership firm registered, by or under any law,
		any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage;