Clarification Regarding Payment of service tax under Reverse Charge Mechanisum, Service Tax

[VAMSI KRISHNA]

Dear All,

'A ltd' is goods transport agency, agreed to transport goods of 'B ltd' & 'C ltd' in a lorry. No others goods are transported in that lorry except goods of 'B ltd & C ltd'. For such transportation of goods 'A ltd' charged ₹ 800 & 600 to 'B ltd & C ltd' respectively.

Now my doubt is

1) The above service provided by 'A ltd' is taxable service or not ????

2) If above service is taxable, as per the provisions of 68(2) who are liable to pay tax under reverse charge mechanisum ????

3) Applicability of excemption specified in mega excemption notification (line item 21 of 25/2012)

 

Thanks in Advance

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 21 (b) of Notification No. 25/2012-ST dated 20.6.2012 (with effect from 1.7.2012) "goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees. Since the total amount charged by the transporter is ₹ 1,400/- (800+600) no service tax is payable either by the service provider or service receiver under reverse charge mechanism.

[Ganeshan Kalyani]

Yes Service tax is not applicable in your case as per Notification 25/2012-ST.