reverse charge applicability in goods transport agency (GTA)

[pradeep kumar]

Is there any latest circular has came regarading GTA services,through which  service receiver is not require to pay service tax. 

service receiver is comapany & service provider is firm/ individual and company. (In case of reverse charge)

[Mritunjay Kumar]

Dear Mr. Pradeep,

There is no any circular where service receiver is not required to pay service tax under reverse charge mechanism. In other words, service receiver is required to pay service tax under reverse charge u/s 68(2) read with Rule 2(i)(d)(v).

However, there is one Notification No. 30/2012-ST dt. 20-06-2012 under which out of various services where reverse charge is applicable, there are few services where there is bifurcation of payment of service tax between service receiver and service provider under the notified percentage.

Regards

CA. Mritunjay Kumar

[YAGAY andSUN]

I am in agreement with the reply of Mr. Mritunjay Kumar.

[Pradeep Sharma]

please see notification 30/2012 dt. 20/06/2012 for reverse charge liability as well for GTA also in which it is clearly mentioned that GTA st liability is with receiver part.

AI Summary

Reverse charge on goods transport agency services: service receiver remains liable under notified reverse charge allocation. Reverse charge liability for goods transport agency services rests with the service receiver; receivers must pay service tax under the reverse charge mechanism. A 2012 notification prescribes a notified percentage split for certain services, allocating GTA service tax liability to the receiver under that bifurcation.