KKC is applicable on GTA under Reverse Charge, Service Tax

[deepak kalambate]

Dear Sir,

We are receipent of Service. Please let us know whether KKC is applicable on GTA to be paid on 5th of June2016 (payment for the month of May2016) under reverse charge?

Regards

Posts / Replies

[KASTURI SETHI]

Service Tax is applicable on GTA which is under reverse charge mechanism. But for May, 16, I think you have received service in May, 16. Received invoice in May, 16 and supposing payment on account freight has also been made in May, 16. KKC is not applicable for May, 16 in such a situation.

[Ganeshan Kalyani]

No KKC is applicable if all three condition I.e. service provided, invoice raised and payment made is before the implementation of levy.

[CS SANJAY MALHOTRA]

Dear Seniors,

Mentioned below in addition to what is being shared for further period. (Just for seniors views..........)

Rule 7 of POT amended vide Notification No. 21/2016-ST dated 30.03.2016

[Provided also that where there is change in the liability or extent of liability of a person required to pay tax as recipient of service notified under sub-section (2) of section 68 of the Act, in case service has been provided and the invoice issued before the date of such change, but payment has not been made as on such date, the point of taxation shall be the date of issuance of invoice. ]

With the levy of KKC, change in the S.Tax liability has resulted in....which means that the in case of RCM, wherever the Invoice has been raised and service has been rendered before May 31, 2016 and payment has not been made, till 31.05.16, THE Date of Issuance of Invoice be considered as POT....... (KKC will not be levied.......)