Service tax liability of GTA & RCM when exempted service provided

[Guest]

We are the Govt. Road Contractor and we are the limited company..This work contract is exempted from service tax. Please confirm whether we are liable to pay service tax under GTA and Reverse charge mechanism . Kindly let me know the proper taxation under service tax Regards Sanjoy Das

[Radha Arun]

Yes, service tax is payable on reverse charge basis on GTA, except for the exemptions specified under notification 25/2012-ST.

[Mahir S]

Yes sir, as explained above you are liable for payment of service tax under partial/full reverse charge mechanism.

AI Summary

Reverse charge: recipient liable for GTA service tax unless a specified statutory exemption applies. Liability for service tax on GTA services falls on the recipient under the reverse charge mechanism unless a statutory exemption applies; the exemption in notification 25/2012-ST is identified as a carve out that, if applicable, removes the recipient's reverse charge obligation.