Service tax on gta

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............

think surely ... two contrasting words neeraj ...

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.

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

• The rate of service tax prevalent on the date when the point of taxation occurs is rate of service tax applicable on any taxable service. In case of the 8 specified services and services wherein tax is required to be paid on reverse charge by the service receiver the point of taxation is the date of payment. Circular No 154/5/2012 – ST dated 28^th March 2012 has also clarified the same. Thus in case of such 8 specified services provided by individuals or proprietary firms or partnership firms and in case of services wherein tax is required to be paid on reverse charge by the service receiver, if the payment is received or made, as the case maybe, on or after 1^st April 2012, the service tax needs to be paid @ 12%.

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 ...

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 

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.

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..

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.

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. 

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 ...

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.

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.

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