Hello,
Is reverse charge mechanism applicable for a company on frieght paid to another company (this being a GTA)?
Does the company which pays the frieght is liable to pay the service tax in such case?
Thanks in anticipation.
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Reverse charge applicability
Replies (2)
Yes company is liable to pay.
| Originally posted by : Avinash | ||
 |
Hello, Is reverse charge mechanism applicable for a company on frieght paid to another company (this being a GTA)? Does the company which pays the frieght is liable to pay the service tax in such case? Thanks in anticipation. |
 |
As per rule 2(1) (d) of service tax rule 1994, company is liable to pay service tax if its a service receipent and avail services of GTA in respect of transportation of goods by road and company have paid the freight.
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