Service tax under reverse charge - gta

Queries 1474 views 4 replies

CA Ankit Mittal

Charterd Accountant

118 Points Joined January 2011

Hello,

What if a Goods Transport Agency deposits the service tax even in cases where the liability to pay service tax was on receiver of the services

e.g. ABC PVT. LTD. wants to send the goods to PQR LTD. For that ABC contacts XYZ which is a GTA

Now lets assume the liability to pay freight was on ABC Pvt. Ltd. & so ABC is the person liable to pay tax.

But what would happen if instead of ABC XYZ(GTA) deposits the service tax

1.) Can Deptt. demand service tax from ABC also?

2.) If yes then wont it be a case of double taxation? Also can XYZ take the refund of tax deposited by itself if deptt. insists on ABC to pay Service Tax.

Please help me with this query

-Thanks

Replies (4)

CA Abhash Mishra

Chartered Accountants

598 Points Joined June 2008

Dear Ankit,

As per a judgment department cannot ask for service tax from receipient provided both the parties are agreed on the basisi of the agreement that Good transport agent will deposit the tax and will file the return.

CA Ankit Mittal

Charterd Accountant

118 Points Joined January 2011

Thanks Abhash for the reply. Could you please tell me which judgement are you referring to.

It would be of great help.

Thanks

Arihant

Business

207 Points Joined April 2009

Under reverse charge liability to pay service tax in case of GTA is of the service receipent only. Hence service tax charges by XYZ should be ignored and ABC should deposit the same to the govt.