Dear All,
My client is registered under s.Tax catagory BSS & GTA(as a liable to make payment for service receiver) and got a contact with the customer to deliver goods at Airport for Rs.10000 + tax(if applicable). Now we have received bill from trasportoer for Rs.10000 and tax thereon 257 payable by us.Should we make the payment for GTA tax ? or in our invoice we should apply tax @ 10.3% and once the payment 15000+tax realised can set off the GTA liability ?
Pls guide me
Dear Pabitra,
I presume the transporter has invoiced the service tax (257/-) for the service rendered. Your client need not further pay service tax on this. Your client can avail CENVAT credit of 257/- and adjust the same against their output Service Tax.
I need more clarity on your next query of you billing 15K plus tax.. What is this invoicing for?
Thanks,
Ganesh
Dear Mr. Ganesh,
The transporter mentioned the tax amount which is payable by us only. If we pay the amount through challan,we have to show the liability in return under goods tansporation by road service. How is it possible to take the credit in the return under BSS.
Like GTA liability :257 paid thru challan -257 balance nil. Once we pay through challan , can't be shown as Cenvat credit.
Then how can we show this Cenvat credit under business support service (we bill to our customer )
Dear Pabitra,
You would show Tax payment made against GTA bill under "Service Recipient". You need to state if you are a Service Provider or a Recipient for the particular service in ST 3.
The tax so paid for GTA is to be shown as CENVAT credit taken in the "CENVAT Credit Taken and Utilized" section. This amount is not shown against a particular output service.
Hope this clarifies.
Thanks,
Ganesh
Dear Pabitra,
I suggest you download the ST 3 Return utility file and have a look at it. It would give more clarity.
https://www.aces.gov.in/Download.htm
Thanks,
Ganesh
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