Reverse charge mechanism

IF CONSIGNOR OR CONSIGNEE BELONG TO ORGANISED SECTOR N THEY LOCATED IN TAXABLE TERRITORY DEN ONLY REVERSE CHARGE APPLY 

IN CASE OF REVRSE CHARGE APPLICATION ..CONSIGNEE OR CONSIGNOR  WILL ONLY PAY VALUE OF SERVICE 

FROM YOUR POINT OF VIEW RS 8764.

AND THE AMOUNT OF SERVICE TAX RS1236 SHALL BE PAID BY CONSIGNEE THROUGH GAR-7 CHALLAN

Originally posted by : nuli swami ayyappa
	X, a trasport agency provide services in relating to transport of goods.so automatically reverse charge mechanism will apply he billed consignee for amount of rs 10000 consignee liable to pay service tax on reverse charge mechanism of rs 1236. how much consignee need to pay to X does he pay 8764(10000-1236) to X? or does he pay entire amount of rs 10000 to X?

Reverse charge is applicable it the person liable to pay service tax is in the specified category. Further, in cases where reverse charge is applicable the GTA will not charge service tax and person liable has to pay service tax on frieght paid.

Hence in you casd consignee needs to pay entire 10000 Rs and pay service tax on Rs 10000 after availing abatement of 75%.
 

Yes...

GTA is not liable under reversecharge..

person responsible for payment of frieght is liable to discharge GTA and it should be either consignee or consignor..

So you can get 10000 from consignee or consignor ..

Thanks & regards

Ganesh babu k

Please note

GTA liable only if both consignor and consignee individuals

GTA liable if goods booked outside India and consignee from out of India is paying freight.