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Service tax (gta)

538 views 4 replies

CA Varun Arora

286 Points Posted on 17 January 2014

Dear Experts,

Kindly give your's advice on following issue.

An goods were purchased by our company.

Transport billty amount is Rs. 30000.

Rs. 12000 paid by the Seller Company and balance Rs. 18000 paid by the usto transporter.

Now the question is under Reverse charge at what amount we have to pay service tax on cartage?

@ Rs. 18000 which we paid

@ Full Amount Rs. 30000

Kindly advice.....

Thanks,

Replies (4)

Ajay Raghatate

Sr Executive (Excise & Accounts)

736 Points Posted on 17 January 2014

IF you have paid 18000 to Vendor and 12000 paid to transporter, ulternatevly you have paid 30000 pertaining to freight, then S tax liability will be 12.36 % of 7500 (25% of 30000) 927.00

If you have paid only 12000 as freight then (12.36% of 3000) 371.00

Thanks

Manoj Agarwal

Service Tax Consultant Rourkela Service

3456 Points Posted on 20 January 2014

In case of GTA, the service tax liability is on the person legally liable to pay freight. Normally, the consignor pay advance to the transporter on behalf of the consignee which is finally reimbursed. If this is the case, you have to pay service tax on 30,000/- @ 3.09%.

CA Varun Arora

286 Points Posted on 20 January 2014

Thanks Sir for your valuable response...

We have paid only Rs. 18000, Balance Rs. 12000 is paid by Seller Company and we have not paid tthem Rs. 12000.

Now Pls Suggust on what amount is our liability?

Thanks,

Ajay Raghatate

Sr Executive (Excise & Accounts)

736 Points Posted on 20 January 2014

Vendor, booked this 12000 freight paid by them, as outward freight and they are liable to pay service tax, on 12000. You have paid 18000 as freight and you are liable to pay service tax on Rs. 18000.00 ( 556.00 / 12.36% on 4500)