Service Tax payment on GTA Service

[Arti Gupta]

Before 01.04.2011, when Service tax is to be paid for GTA service under reverse charge. Whether on payment or service provided by GTA?

[SHIVKUMAR SHARMA]

Dear Deepak

 

Service tax is to be paid only on the 25% of amount paid to GTA under reverse charge .

 

Shivkumar Sharma

[Shyam Naik]

Dear Deepak,

In case of service tax payable by the service receiver under reverse charge, the tax shall be paid on payment basis.

However, if payment is not made to the service provider(GTA, in this case) within 6 months from the date of the invoice, the point of taxation shall be the date of the invoice.

Please refer rule 7 of Point of taxation rules.

 

Shyam

[Arti Gupta]

Please explain the position before 01.04.2011 when point of taxation rules was not applicable.

AI Summary

Clarification sought on service tax payment for Goods Transport Agency services under reverse charge before April 1, 2011. A discussion on the payment of service tax for Goods Transport Agency (GTA) services under reverse charge before April 1, 2011, raised questions about whether tax should be paid upon payment or service provision. One participant clarified that service tax is payable on 25% of the amount paid to GTA under reverse charge. Another noted that the tax is generally paid on a payment basis, but if not paid within six months of the invoice date, it defaults to the invoice date. Further clarification was requested on the tax position before the implementation of the point of taxation rules.