service tax on GTA

1) if service Receiver is PVt.Ltd co.& service provider are proprietor then who is liable to pay service tax under GTA

2)IF Both Under GTA Propritor ther who isliable to pay service tax.

pls give me response as soon as possible with notification.

our is pvt. ltd. company we received material and we send our material to transport for that we have to give freinght i want to know what are the expemtion in service tax

with regards

dhiraj mehta

75% abtement is available under GTA without any conditions.  Cenvat credit cannot be availed.

Reply to Query of Mr. P.P. Gogad

If Service provider doesn't provide Consignment Note, then he is at default,

But that doesn't relieve Consigner or Consignee, whoever pays Freight & is also covered within the definition of 'Specified Persons', to charge & Deposit Service Tax.

These two are separate issues,Service Provider hasn't fulfilled his part of obligation but Service Receiver has to fulfil his part of obligation anyhow

Reply to Query of Mr. Dhirj Mehta.

Dear Sir,

You will have to charge Service Tax on Freight payments made by you but you can avail exemption to the extent of 75% of value of Freight payments.

Earlier there were certain benefits that you would have lost out if availing aforesaid exemption such as you wouldn't have taken the Cenvat Credit,but now such restriction has been done away with. Hence you can now avail the benefit of Cenvat Credit also.

Mr. Dhiraj

Please ignore my earlier response. I was wrong in framing my reply.

75% abatement is available provided Service Provider(Not the Service Receiver) hasn't availed any Cenvat credit.For that, earlier Service Receiver would require to have a declaration from Service Receiver that they are not availing any Cenvat credit. But now such condition has been done away with. Now Service Receiver is no longer required to prove that Service Provider hasn't taken any credit.

Remember, for Service Receiver,its only an Input Service hence the question of Service Receiver losing out on any benefit Cenvat Credit never really exist. Its Service Provider who will lose out on Benefit of Cenvat credit, if it avail abatement of 75%.Your Company is infact paying Service Tax just on the behalf of Service Provider.

TDS is to be deducted only on value of service provided
 

" If Freight is paid by consignee, he will be liable to pay service tax irrespective of the fact that his name dose not appear on the consignment note. As per Rule 4B of service tax Rules transporter is required to state on consignment note as to who is liable to pay Service tax. if on consignment note endorsement is noitced then the liability will be accordingly. However in the absent of such endorsement, if the Company pays freight, Service Tax liability is of the Company."    

GTA must issue consignment note

If consignement note is not issued then the service is not liable SERVICE TAX.

Mere receipt of goods does not make the transaction taxable.

the last date of deposit of service tax is 5 day of the following month

further later on ..............

I have a doubt regarding the above situation in which kindly guide me :

There is a partnership firm which is purchasing goods from a Company. It is the liability of partnership firm to pay the freight on goods sent by the company from Mumbai.The GTA is issuing the consignment note in the name of the Firm. In the above case is it the liability of firm OR gta to pay the Service TAX. 

Adding to the quarry from Mr. Gogad , if a company is GTA registered but does not have the consigment note of its own and uses another transporters consignment note. Can this company issue an invoice to the shipper charging service tax @ 10.30 % of the 25% of the freight amount.

Regards

Adarsh

thnx for all info...but i want to know  when the Service Tax on GTA liability arises and has to be paid, either after receiving the service or after payment of transportation charges to GTA.

This is the reply of Querry asked by Mr. Kaushal Rathi.

The Liability to pay service tax will be of partnership firm as the consignment note is issued in favour of the firm.

The payment of ST on reverse charge is only on GTA ( booking agents) and not on GTO ( owner/ operator) . Therefore if the freight cotract is with a lorry owner to transpiort goods every day and paymentis made on KM basis or trip basis the same would not be liable under GTA.