Vikash Kumar (Manager Accounts (CA. Final)) (694 Points)
23 December 2010A company is liable to pay service tax for payment made to GTA in excess of Rs.750/- during the financial year-2008-09, 2009-10 and 2010-11, but not registered till now in service tax (even after audit, liabilities not confirmed by auditor) .
i want to know that what are the liabilities under service tax act & what to do now as best under provision of service tax act?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 23 December 2010
| Originally posted by : Vikash Kumar | ||
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A company is liable to pay service tax for payment made to GTA in excess of Rs.750/- during the financial year-2008-09, 2009-10 and 2010-11, but not registered till now in service tax (even after audit, liabilities not confirmed by auditor) . i want to know that what are the liabilities under service tax act & what to do now as best under provision of service tax act? |
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Jeevesh Mehta
(Advocate- Corporate Commercial & Indirect Tax Advisory)
(861 Points)
Replied 23 December 2010
Dear Vikash,
Please clarify as what is this Rs 750/-
If you are liable to pay the service tax then you have to take iummidiate action to register yourself with service tax department and file all belated returns along with the Service tax not paid till now .
Consult an advisor for the said purpose .
regards
Jeevesh Mehta
Service tax Advisor
Ph: 0911617186
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 23 December 2010
sharmaji audit not done by department, its about audit by the company auditor.
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 23 December 2010
| Originally posted by : Jeevesh | ||
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Sir please read this,
Exemptions/Abatement if any Notification 13/2008 ST dated 01.03.2008 provides an exemption of 75% of the gross amount charged for the transportation of goods and consequently, service tax would be payable only on 25% of the amount charged, at the applicable rate which is 10.3% at present. Notification 34/2004 ST dated 03.12.2004 as amended also provides an exemption from service tax where the amount of freight charged for individual consignments does not exceed Rs. 750 and for other consignments where it does not exceed Rs. 1500. Service tax has also been exempted on transport of goods by road service for transportation of fruits, vegetables, egg or milk, under Notification 33/2004 ST dated 03.12.2004. |
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U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 23 December 2010
| Originally posted by : Jeevesh | ||
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Dear Vikash, Please clarify as what is this Rs 750/- If you are liable to pay the service tax then you have to take iummidiate action to register yourself with service tax department and file all belated returns along with the Service tax not paid till now . Consult an advisor for the said purpose . regards Jeevesh Mehta Service tax Advisor Ph: 0911617186 |
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03, December, 2004
Notification No. 34/2004 - Service Tax
In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from the whole of service tax leviable thereon under section 66 of the said Act, where,-
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(i) |
the gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand five hundred; or |
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(ii) |
the gross amount charged on an individual consignment transported in a goods carriage does not exceed rupees seven hundred fifty |
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Explanation .- For the purposes of this notification, “an individual consignment” means all goods transported by a goods transport agency by road in a goods carriage for a consignee. |
2. This notification shall come into force on the first day of January, 2005.
F. No. 341/18/2004-TRU (Pt.)
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 23 December 2010
| Originally posted by : Vikash Kumar | ||
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sharmaji audit not done by department, its about audit by the company auditor. |
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atleast pay for 2010-11 by registering yourself with servicetax, and file returns from now
during the course of audit by excise department u will have to pay the servicetax for arrear years since 2005
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 23 December 2010
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 23 December 2010
| Originally posted by : Vikash Kumar | ||
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U mean to pay and file service tax return for the 2nd half only or for both half year? |
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lots of confussion u carry :)
1. u have to divide ur GTA in two parts a) transport bills above 750 ( where ur consignment is only charged) and b) above 1500 ( where u have hired a full vehicle )
2. monthwise u have to calculate total of such transactions
3. take abatement of 75% on gross such transactions ( generally its nominal in value)
4. pay for oct/nov /dec in jan and for jan/feb/mar in march, file return in april by 25th
5. for april-sept 1st of all determine the taxable figure, and if possible then shift the liability to 2nd half by switching the payment dates.
for earlier years u have to wait for departmental audit, disclose the facts to them and show that unwilingly its done, in absence of proper guidelines, they will help u surely as u r wiling to pay the revenue.
Vikash Kumar
(Manager Accounts (CA. Final))
(694 Points)
Replied 23 December 2010
Thanks for giving ur valuable time.
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