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?

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.