Service Tax Registration Required for Salt Mfg. company under reverse charge mechanisam

[Mehul Pandya]

Sir,

In case private limited company engaged in Salt Manufacturing. Therefore GTA is exempted. Therefore service tax registration not required. but Service tax under reverse charge is applicable to salt manufacturing unit or not ??

Thank you

[Madhukar N Hiregange]

Reverse charge is applicable in transactions the common one being GTA. Joint charge also maybe applicable to a Co. See article on reverse/ joint charge in articles section.

If only GTA no registration reqd.

[Arun Kumar Singh]

Service tax registration is required under reverse charge system vide notification no. 30/2012-ST. 

[YAGAY andSUN]

Dear Mehul,

Under Reverse Charge Mechanism, the service receiver is deemed to be service provider and is person liable to pay the service tax under such scenario.  Therefore, such person is under obligation to get the registration certificate from the Jurisdictional Authorities and pay the tax on GTA service accordingly.

Regards

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

AI Summary

Reverse charge mechanism requires service receivers to register and pay service tax on specified inbound services such as GTA. The reverse charge framework treats the service receiver as the person liable to pay service tax on specified inbound services; where notification-based reverse charge applies to GTA or similar services the recipient must obtain registration from the jurisdictional authorities and pay tax, although industry-specific exemptions for GTA may affect the registration requirement.