Service Tax in case of GTA

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Manish

salaried employee

42 Points Posted on 07 March 2009

Dear All,

I have on query please help me urgently with proper reference of circular or sections.

"We are a company and in our case If we are paying advance payment to the transporter(GTA) than at that time of advance payment whether we have to deposit the service tax by 5th of the next month proportionately to the Gov. on that advance payment or we will pay service tax on behalf of the GTA later on after settlement of his bill".

Regards

Replies (3)

CA CS Akashdeep Singh

Practicing CA

867 Points Posted on 07 March 2009

Originally posted by :Manish
"	Dear All, I have on query please help me urgently with proper reference of circular or sections. "We are a company and in our case If we are paying advance payment to the transporter(GTA) than at that time of advance payment whether we have to deposit the service tax by 5th of the next month proportionately to the Gov. on that advance payment or we will pay service tax on behalf of the GTA later on after settlement of his bill". Regards	"

In my opinion, you have to pay the service tax now i.e., till 5th of next month respect to month in which advance payment made.

annapurna

Chartered Accountant

453 Points Posted on 10 March 2009

Yes, you have to pay the service tax on advance payment also as you being the service receiver is liable to pay service tax on amount paid to GTA and in case GTA is liable to pay service tax, then service tax has to be paid on receipt basis, eventhough received in advance. Service tax is liable on gross amount received before, during or after provision of service.

Manish

salaried employee

42 Points Posted on 12 March 2009

Thanks for the response. Also pls let me know the relevant sections or rules where i could get the clarification related to the above statements. Regards Manish