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Rate of tax on GTA - Service Tax

#1 Issue Id: - 4191
Dated: 28-5-2012
By:- Harishanker Patel
Rate of tax on GTA

  • Forum

We are the receipient of service & lible to pay service tax as per rule.

What should be the rate For GTA for below condition-

Service received - Before 01.04.2012

Consignment Note & Bill Date  is - Before 01.04.2012

Service tax charged on bill - 10.3%

Payment Made to Transporter - April'2012.

 

Regards,
Harishankar

 

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Posts / Replies

 

#2 Dated: 28-5-2012
By:- Pradeep Khatri

The applicable rate would be 10.30%.


#3 Dated: 28-5-2012
By:- Harishanker Patel

Sir,

Kindly explain the basics for rate on the GTA.

Regards,

Harishankar


#4 Dated: 28-5-2012
By:- raj kumar shukla

in my view , point of taxation rules  of Rule 7 will apply in the instant case as G T A is notified under section 68(2) of the Finance Act 1994 hence date of payment made would be the point of taxation. since it is after 1st april 2012 rate of tax would be 12.36% and not 10.3%.


#5 Dated: 28-5-2012
By:- Harishanker Patel

Dear Khatri Sir,

I also agreed with the view of Mr. raj kumar shukla.

Kindly look the Notification No.25/2011 – Service Tax & corelate with Circular No. 158/9/ 2012 – ST & confirm regards this matter.

Regards,

Harishankar


#6 Dated: 28-5-2012
By:- Pradeep Khatri

Sorry, I had reffered old clarification as mentioned below.  Thanks for updating me.

The various dates have been clarified as follows, vide para 3 of TRU (II) MF(DR) letter F.No.341/34/2010-TRU dated 31-3-2011.

S. No.

Date of completion of service

Date of invoice

Date on which payment recd.

Point of Taxation

Remarks

 

1.

 

April 10, 2011

 

April 20, 2011

 

April 30, 2011

 

April 20, 2011

Invoice issued in 14 days and before receipt of payment

 

2.

 

April 10, 2011

 

April 26, 2011

 

April 30, 2011

 

April 10, 2011

Invoice not issued within 14 days and payment received after completion of service

3.

April 10, 2011

April 20, 2011

April 15, 2011

April 15, 2011

Invoice issued in 14 days but payment received before invoice

 

4.

 

April 10, 2011

 

April 26, 2011

April 5, 2011 (part) and

April 25, 2011

(remaining)

April 5, 2011

and

April 10, 2011 for respective amounts

Invoice not issued in 14 days. Part payment before completion, remaining later


#7 Dated: 30-5-2012
By:- MANDAVILLI RAMAKRISHNA

GTA need not pay service tax at full rate.

it can pay only on 25% of the 10.30 on abatement basis

but you should not have charged ST at 10.3 from your clients in the invoice raised by you.

 

One more important thing, if you obtain next time when pruchasing trucks, take gate passes and you can

set off the ST liability agains the duty paid.


#8 Dated: 30-5-2012
By:- raj kumar shukla

mr. Hari shanker, what do you think of above reply?


#9 Dated: 30-5-2012
By:- Harishanker Patel

Dear raj kumar shukla,

I agreed with your view & Mr. Pradeep Khatri sir also assumed that your view is the correct but there is one confusion that wehether we need to ask the transporter to raise supplementory inv with charging us the diffrential service tax amount as as we have to take cenvat credit against said payment also & the transporter charged us service tax @10.3% on said bills.


#10 Dated: 30-5-2012
By:- raj kumar shukla

INFACT, MY OBSERVATION WAS RELATED TO REPLY BY MR RAMAKRISHNA  WHICH ACCORDING TO ME WAS NOT PROPER AS YOU CAN NOT TAKE CENVAT WITHABATEMENT WHAT TO TALK OF CENVAT ON TRUCKS. ANY WAY, I DON NOT KNOW  WHETHER YOU ARE LEGALLY LIABLE TO PAY THE TAX UNDER REVERSE CHARGE MECHANISM BEING ONE OF THE SEVEN CATEGORIES AND MAKING PAYMENTS TOWARDS FREIGHT. IF THAT BE SO SERVICE TAX WAS LIABLE TO BE DEPOSITED BY YOU THROUGH CHALLAN. NOW THE DIFFERENCE CAN ALSO BE PAID ALONGWITH INTEREST THROUGH CHALLAN AND CREDIT CAN BE TAKEN BY YOU.  IF YOU WERE NOT LIABLE AND GTA WAS LIABLE ASK HIM TO RAISE DIFFENTIAL INVOICE. (SUPPLEMENTARY INVOICE). CREDIT CAN BE TAKEN BY YOU ON SUPPLEMENTARY INVOICE. LIABILITY MAY BE EXAMINED BY YOURSELF.


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