Sir,
Please tell me , as per reversed charged mechanism , service tax is to be paid by service receipient in respect of Good Transport Agency by Road.
My Query is.. suppose a Invoice has been raised by servive Provider without service tax .. on service receipient .. that means service receipient has to calculate service tax on service provider invoice and pay service tax or what?
Pls Explain
Thanks & Regards
Sushant
Dear Sushant
If service tax is not shown on invoice then it means that GTA charging only for its services which is redering or rendered.
The client have to calculate service tax on that @ 12.36% and pay to SG.
service provider i.e gta has to show service tax in the consignment note and state in the consignment note by whom the service tax liability has to be discharged. However, mere not showing service tax amount in the consignmnet note can absolve service recepient of its liability.
It has to calculate service tax amount and discharge its liability.
service tax has to be paid by the recipient irrespective of the fact whether the same has been charged by the GTA or not. The 75% abatement can be claimed by the recipient.
CAclubindia
