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GTA services, Service Tax

Issue Id: - 111512
Dated: 16-2-2017
By:- omkesh garg

GTA services


  • Contents

hello,

I have a pvt ltd co. in chandigarh. We purchase goods from delhi and bill include freight,

let, goods cost = 100

cst = 2

total = 102

freight = 15

total = 117

so i pay rs 117 to the dealer of Delhi .

Am i liable to pay service tax under reverse charge?

Posts / Replies

Showing Replies 1 to 4 of 4 Records

Page: 1


1 Dated: 16-2-2017
By:- YAGAY AND SUN

No, since on freight amount Excise duty is being paid.


2 Dated: 16-2-2017
By:- Ganeshan Kalyani

Either consignee or consignor or if both are not liable to pay tax then transporter himself have to pay service tax under gta.


3 Dated: 16-2-2017
By:- Rajagopalan Ranganathan

Sir,

Rule 2 (d) (B) of Service tax Rules, 1994 stipulates that 'taxable person' in respect of goods transport agency service (GTA for short) where the person liable to pay freight is any factory registered under or governed by the Factories Act, 1948 (63 of 1948) or any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder. Therefore both you and the dealer supplying the excisable goods to you are liable to pay service tax. Normally dealers/manufacturers who supply the excisable goods will raise 'To pay' bills on their customer since the only the customer is eligible to take credit of service tax paid on GTA service. If the dealer has raised 'to pay' bill on you then you are liable to pay service tax under reverse charge mechanism.


4 Dated: 16-2-2017
By:- KASTURI SETHI

I support the views of both experts, namely, Sh.Ganeshan Ksalyani, Sir and Sh.Rajagopalan Ranganathan, Sir.


Page: 1

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