Reverse charge applicabilty

Proprietorship firm is also liable to pay service tax on goods transport agency if who is registered under the central excise act, 1944 (1 of 1944) as a dealer.

Reverse Charge on Freight paid to GTA:

1. If Proprietorship firm doing trading of goods and not registered as Dealer under Central Excise, then no reverse charge.

2. If Proprietorship firm doing trading of goods and registered as Dealer under Central Excise, then reverse charge applicable and propriotor has to pay service tax @ 3.09%

3. If proproetorship firm doing manufacturing and not registered or governed under Factory Act, 1938, then no reverse charge.

4. If proproetorship firm doing manufacturing and registered or governed under Factory Act, 1938, then reverse charge applicable.