Chetan (Officer) (112 Points)
26 May 2012Hi all. plz help me on this...
I have received a bill of Transporter pertaining to F.Y.2011-12. Now I have booked the bill in F.Y. 2011-12 but the GTA payment will be made pertaining to that bill in the month of June-2012. Should I pay GTA on the rate prevailing at the time of payment .i.e. 12% or should I make the payment on the rate prevailing as per the bill date.i.e 10%.???? Plz breif me on this ...
neeraj
(CA)
(930 Points)
Replied 26 May 2012
Bill is for the period of 11-12 , further u have booked the bill also on 11-12 , thats why i think ST rate will be 10% surely............
Pinky Agarwal
(Chartered Accountant)
(426 Points)
Replied 26 May 2012
In case of GTA service (when receiver is liable to pay service tax) liability of service tax arises on payment basis i.e when freight is paid.
However, if payment is not made in six months from bill date then POT shall be date of invoice.
Hence, Service tax shall be apllicable at the rate of 12 % as per Circular No.158/9/2012 dated 8th May, 2012.
FinsQ
(service provider)
(54 Points)
Replied 26 May 2012
pinky is right... ST shud be @ 12.36%... with abatement @ 75% on taxable value....!!
https://www.facebook.com/pages/FinsQ-Professional-Services-Private-Limited/133052586779699
Chetan
(Officer)
(112 Points)
Replied 26 May 2012
this is the notification which u had specified ... but this notification no where mentions payment on GTA ... it says tax to be paid on reverse charge by the service receiver. does this mean GTA ... if yes then can you plz let me know where is it defined ...
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 26 May 2012
Hi Chetan,
In case of GTA (which comes under Reverse Charge mechanism) Point of Taxation rules says that rate shall be considered as on the date of payment.
invoice issued: 2011-12
Date of payment: 2012-13 (Rate of this year shall be taken)
Regards
Prateek
Pinky Agarwal
(Chartered Accountant)
(426 Points)
Replied 26 May 2012
Dear Sir,
Kindly clarify the status of Consignor and Consignee so that applicability of reverse Charge can be determined?
In my reply i have assumed that both the consignor and consignee are under seven specified catagory..
Regards,
Pinky Agarwal.
Pinky Agarwal
(Chartered Accountant)
(426 Points)
Replied 26 May 2012
As the consignee is the manufacturing plant i.e a factory (included under seven specified catagory) then person liable to pay service tax is the person who makes the payment of freight.
Reverse Charge means where liability for payment of service tax is on service Receiver. Since in your case service receiver that is person who pays the freight is liable to pay service tax. Hence it is covered under reverse charge mechanism..
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 26 May 2012
You are still confusing.
Consignor can never be the GTA.
There are 3 parties involved. Consignor is the one who sends the material to the consignee using the services of the GTA. In general cases, the consignor or consignee comes under 7 specified services Hence, the person who pays freight will be liable to pay service tax. So, basically the GTA doesn't give service tax. Either the consignor or consignee pays the same, hence liable to tax. So POT may be considered accordingly.
anujrastogi
(AUDIT MANAGER)
(21 Points)
Replied 31 May 2012
What will be the treatment in the hand of service receipient in the case of reverse charge. Whether the service tax paid by service receiver is allowed as expenses or can avail input service tax.
Chetan
(Officer)
(112 Points)
Replied 31 May 2012
dat depends of the nature of service received ... suppose if i paid transportation charges for bringing raw material in plant then i can avail service tax on GTA paid .. but if i paid transportation charges for bringing some material which has no direct relation to input (production) then i have to pay GTA but credit cannot be availed ...
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 01 June 2012
For GTA service, if it is input freight then credit can be availed. But if outward freight, then credit can be availed only on the freight upto the place of removal.
Gokulananda Sahu
(ACA ACS ACMA ACMA CGMA)
(22 Points)
Replied 18 August 2012
if some one has provided the service in FY 2011-12 and raised the invoice in FY 2012-13 charging ST @ 12%. shall we pay this amount or pay considering ST @ 10% only.
Awanish kumar
(Article assistant (ca final))
(33 Points)
Replied 25 August 2012
hi.........
lets a exampel, if a company paid transport bill and booked in its book as fright outward then, Is it liable to pay service tax ? if yes how calculate? is there any abttment?
plz send any one rply
CAclubindia
