Service tax

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Please clarify,

We are a private Ltd company, If we sends a consignment through road side local lorry, whether we have to pay Service Tax of 25% on the Freight charges under GTA

 
Replies (2)

Yes , as per the reverse charge machanism,  notification no. 30/2012, and Notification 31/2012

100% of service tax payable should be paid by the Service receipient

and as per Notification 26/2012

abatement on TPT is 75% so

25% of the value of service renderd is chargable to service tax and should be paid by the recipient.

Thanks

 

The Government of India has shifted the liability to pay service tax payable from GTA to the consignor or consignee, as the case may be, who is liable to pay the freight for such transportation to the GTA where the consignor or the consignee is :

 

  1. Any factory registered under or governed by the Factories Act, 1948
  2. Any Company established by or under the Companies Act, 1956
  3. Any Corporation established by or under any law;
  4. Any society  registered under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India;
  5. Any Cooperative society established by or under any law;
  6. Any dealer of excisable goods, who is registered under the Central Excise Act, 1944 or the rules made there under or
  7. Any Body corporate established, or a partnership firm registered, by or under any law.

 

When the person liable to pay freight is not a notified category of persons, the transporter will be liable to pay the tax.

 

Pls check who is paying freight i.e., consignor or consignee....pay accordingly.


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