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Service tax in gta

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Jayprakash Patel

Senior Account Executive

55 Points Posted on 28 December 2016

I (Private Limited Company) provide the GTA service to the various client by hiring trucks by third party. Some of our client does not have Service tax registration. So they demand that provide us the bill in which you charge the service tax @ 4.5%. Is it possible to charge service tax from service receiver under reverse mechanism?? If possible then how can I billing the same and shown in Service tax return???

Replies (1)

Ashoka G

Student CA IPC / IPCC

105 Points Posted on 30 December 2016

If your customers doesn't fall under any of the below category, then you may have to charge service tax-

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e) any body corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons;

If he falls in any of the above category, Service Tax shall be payable under Reverse Charge Mechanism