CA Yugal Purohit (Chartered Accountant) (206 Points)
25 December 2013As per service tax rules, In case of GTA ,The tax is payable on reverse charge basis by consignor or consignee who ever pays the freight, if the consignor or the consignee is factory, registered society,
co-operative society, registered dealer, body corporate, partnership firm, LLP and
association of persons.
My question is that, Can a GTA can pay frieght always at his own whatever may be the situation ?
(In consigment note it will write that GTA himself is liable for service tax .)
CA Ankit Mittal
(Charterd Accountant)
(118 Points)
Replied 25 December 2013
No the GTA can't deposit the service tax on its own if the reverse charge mechanism is applicable. Mentioning in the consignment note won't extinguish the liability of the service receiver to pay the Service Tax.
The Reverse Charge Liability under section 68(2) is a stautory liability imposed by the law. The liability of Service Provider and Service Receiver are different and independent of each other. So even when the Service Tax is wrongly charged in the invoice the liability of Service Receiver is not discrged
Vidya Jain
(vidyajain07@gmail.com)
(558 Points)
Replied 25 December 2013
Jugal,
Statutory Liability for paying the service tax is on the person who is paying the freight. It can not be shifted by mutual agreement.
Thus, GTA should pay the amount when the service is rendered to sole proprietorship concern, or where reverse charge is not applicable.
CA Vidya
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 25 December 2013
Generally, the liability to pay service tax has been placed on the ‘service provider’. However, in respect of the taxable services notified under Sec.68(2) of the Finance Act,1994, the service tax shall be paid by such person and in such manner as may be prescribed
In relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is- any factory, any company, any corporation, any registered society, any co- operative society, any registered dealer of excisable goods , any body corporate or a partnership firm;
In case of GTA acconting code for tax collection is 00440262 and tax receipts is 00440263
Accounting Code for ‘Education Cess’ is ‘00440298’ for all services. Accounting Code for ‘Secondary & Higher Education Cess’ is ‘00440426’ for all service
CS and ACMA Raju lakhani
(Working in Public Co.)
(340 Points)
Replied 25 December 2013
pagal bachha
(Student CA Final )
(27 Points)
Replied 26 December 2013
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 26 December 2013
Agree with views of CA Ankit and Vidya.
For more details on GTA Service, follow the link below:
https://www.caclubindia.com/articles/service-tax-on-gta-a-guide-19063.asp
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 26 December 2013
It is a settled proposition of law that you can not nullify legal provisions by mutual agreement.As per Rule 2(d) of the Service Tax Rules,1994 ,in case of GTA the recepient of Service is liable to pay the S.T.The only exception is mentioned in the proviso which says that provider of the Service will pay the S.T if such person is located in the 'non taxable' territory.
CAclubindia
