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Service tax on transporter
HI,
SIR, MY CLIENT IS A LOGISTIC FIRM , HE IS PROVIDING LOGISTIC SERVICE TO A PVT. LTD. FIRM , HE HIRE TRUCK FROM THIRD PARTY , BILTY / CONSIGNMENT NOTE IS CUT BY HIMSELF. MY QUESTION IS (1) WEATHER HE SHOULD CHARGE SERVICE TAX FROM HIS CLIENT (2) WHEATHER HE IS LIABLE TO PAY SERVICE TAX CHARGED BY HIS VENDORS FROM WHOM HE IS TAKING TRUCKS FOR DELEVERY OF GOODS
Replies (3)
Transporter are not liable to charge the service tax, service tax will be paid by the consignee or the consigner and have to take Service tax registration under GTA.
thanks
in the situation you stated..your client will be the GTA for the pvt. ltd. company..as he is providing the consignment note..
But as per sec 68, since the company comes under specified person category and also is in TT(assumed) there will be 100% reverse charge..and the company will pay service tax on it.
1) He need not charge service
But as per sec 68, since the company comes under specified person category and also is in TT(assumed) there will be 100% reverse charge..and the company will pay service tax on it.
1) He need not charge service
Kindly ignore the above comment..have resend again with complete answer.
in the situation you stated..your client will be the GTA for the pvt. ltd. company..as he is providing the consignment note..
But as per sec 68, since the company comes under specified person category and also is in TT(assumed) there will be 100% reverse charge..and the company will pay service tax on it.
1) He need not charge service tax and the pvt co. Will pay
2) His vendors need not charge service tax from your client...as the service they are providing if:
A) its renting..then renting of motor vehicle to GTA is exempted.
B) if its sub contracting, then will be covered in negative list u/s 66D(p), as his vendors are not GTA
So in any case his vendors need not charge service tax from him.
Hope it serves your purpose.
in the situation you stated..your client will be the GTA for the pvt. ltd. company..as he is providing the consignment note..
But as per sec 68, since the company comes under specified person category and also is in TT(assumed) there will be 100% reverse charge..and the company will pay service tax on it.
1) He need not charge service tax and the pvt co. Will pay
2) His vendors need not charge service tax from your client...as the service they are providing if:
A) its renting..then renting of motor vehicle to GTA is exempted.
B) if its sub contracting, then will be covered in negative list u/s 66D(p), as his vendors are not GTA
So in any case his vendors need not charge service tax from him.
Hope it serves your purpose.
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