Service tax under reverse charge for partnership firm

Ok. But whether Service Tax on reverse charge is applicable for freight charges charged by the supplier on purchase bills???

The person who pays frieght charges to GTA is liable for reverse charge. If the partnership firm pays bill amount including frieght charges to the supplier, partnership firm will not be liable pay service tax under reverse charge mechanism.

Thanks a lot sir...

Ok means service tax under the reverse charge mechanism will be applicable on the freight charges incurred by the firm for supplying their goods to their clients right...

thanx a lot sir for valuable information........

Now my 1st Question is that, what will happen in same case of Pvt. Ltd. company..????

& 2nd one is - Can Pvt. Ltd. Company take credit of service tax against excise in GTA...??????

In case of Pvt company 100% service tax need to be pay by pvt company under RCM.

and same can be eligible for cenvat credit.

Regards

Kumar

If GTA service is provided to A factory,society, co-operative,dealer of Excise,body corporate or toa PARTNERSHIP FIRM whether regitered or unregistered,under RCM there 100% liability of the service recepient.So,in your case it is your liability to pay Servie tax being recepient of the service.[Notification no.30/2012S.T dated 20.6.2012.]

thanxx All.......

As per my knowledge & information, In GTA Input service tax credit Allowed But Output Service tax credit Allowed or not.....???? And If it is Allowed then how ???

if amount of freight paid by partnership firm is Rs.1000 then service tax under reverse charge mechanism will be @ 12.36% on Rs.1000/- i.e Rs.123.6/- right????

Or there is some abatement???

Notification No.26/2012 dated 20/06/2012 has allowed abatement of 75% on GTA subject to the condition that the CENVAT credit on inputs, capital goods and input services has not been taken by GTA. So the effective rate will be 3.09%. (i.e Rs.30.9/- in the above case) This abatement is available to service provider as well as service receiver paying tax under reverse charge mechanism. Service receiver has to obtain declaration/certificate from GTA stating CENVAT Credit is not taken.

I have a Partnership firm ( Regd Under Service Tax Act )  please tell me whether I have to Pay Service Tax under Reverse Charge mechanism on the Services of Transporter & Work Contract .. ( The are not Registered under service Tax Act )

Please let me Know.

Yes, You need to pay tax under reverse charge basis.