GTA Service Tax on Hamali charges

[Mathurthi RamKumar]

Dear All,

Greetings of the day... We are paying S.Tax on GTA every month and taking cenvat credit. I want to now weather hamali chrges are also laible to pay service tax above 750/-? (we are showing hamali chargs saparete amount in the head feright on stores material)

Thanks in Advance

M.RamKumar

[YAGAY andSUN]

Dear Mathurthi Ramkumar,

Such charges are required to be included in the taxable value for calculating the Service Tax required to be paid under Reverse Charge Mechanism.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Yes sir, gross amount is required to be charged for payment of service tax.

However, if such charges are shown and incurred separately, then it should be treated as loading/ unloading charges and inclusive in the assessable value of the finished goods.

AI Summary

GTA service tax liability: include hamali and loading/unloading charges in taxable value under reverse charge mechanism. Hamali and loading/unloading charges must be included in the taxable value of Goods Transport Agency services for computing service tax under the Reverse Charge Mechanism; separately shown charges are nonetheless treated as part of loading/unloading and included in the assessable value of the goods, and the gross amount should be used for service tax calculation with corresponding cenvat credit implications.