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Querry on gta

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Rahul Basutkar

Sr. Auditor

42 Points Posted on 06 February 2013

We are the builder & developer firm, we used to purchase the material like sand and gritt powder etc from various vendors. The vendor gives bills in two parts one for purchase of material & other for transport. Both the firns for material and transport are owned by the same supplier. In that case are we liable to pay service tax on the transport services under GTA.

Can we take input credit of serivce tax paid on GTA service, while paying service tax on constrction services.

Replies (2)

Mr Subrata Dasgupta

Finance Professional

170 Points Posted on 07 February 2013

Dear Rahul,

If the Transporting Agency is a registered "Goods Transport Operator" you have to pay the Service Tax because of Reverse Charge Mechanism (RCM). If the transporting agency is not in the business of Goods Transportation then you need not pay the service tax by RCM. However, if the Service Tax is included in the bills of the transporting agency, you have to pay the same and claim Cenvat Credit against your liability to pay Service Tax.

Madhukar N Hiregange

Chartered Accountant

33545 Points Posted on 07 February 2013

The supplier of sand/ jelly etc cannot be called as transporter much less a GTA. No liability on either him or the reciver for making payment under reverse charge.