Service tax
YAGNESH HASMUKH DAVE
(Querist) 12 April 2013
This query is : Resolved
A LOCAL TRANSPORTER PROPRIETORY CONCERN TRANSPORTING THE GOODS OF BLDG MATERIALS BY ROAD TO PARTNERHSIP FIRM AND CORPORATE COMPANY PVT LTD & PUBLIC LTD CO MY QUESTION IS AR AS UNDER
1) WHETHER THE TRANPSORTER HAS TO TAKE SERVICE TAX REGISTRAION NO
2) WHAT WILL BE ABTEMENT ALLOWED & RATE OF SERVICE TAX
3) WHO IS LIABLE TO PAY THE SERVICE TAX WHETHER TRANSPORTER OR SERIVICE RECIEVER THAT IS PARTNERSHIP FIRM OR PVT LTD CO OR PUBLIC LTD
CA Ayush Agrawal
(Expert) 13 April 2013
1. As per section 69, only person liable to pay service tax is required to be registered. It is true that as per rule 4A(1)(i), a service provider issuing invoice has to indicate his registration number in his invoice. However, in case of conflict between section and rule, obviously section will prevail. Moreover, as per para 5.1 of MF(DR) letter No. 341/18/2004-TRU(Pt) dated 17-12-2004, goods transport agencies which are not liable to pay service tax are not required to be registered under service tax rules.
The basic scheme is that the goods transport agency (GTA) will be preparing the consignment note and invoice containing details as required. Service tax payable will also be shown on the invoice/bill/challan prepared by goods transport agency. However, payment of service tax will be made by the consignor or consignee who is actually paying the freight, if the consignor/consignee paying freight is a company, body corporate, cooperative society, registered society, factory, partnership or dealer registered under Central Excise
If you are providing service to other than above, then you need to pay service tax and charge in invoice.
CA Ayush Agrawal
(Expert) 13 April 2013
2. Notification No. 26/2012 sr. no. 7.
Rate 12.36%. Abatement Allowed 75%.
Means in Nutshell, 3.09% to be payable only.
3.Service Receiver Only.
Already discussed the same in first reply.
