Place of provision service rules, 2012 (Jammu)

[pawan pant]

Sir,

We arepaying freight payments from our corporate office(Location -Delhi) to transporter who are rendering GTA service in Jammu. My question is simple that whether we are liable to pay service tax under reverse charge mechanism.?

AI Summary

Corporate Office Examines Service Tax Liability for GTA Freight Payments Under Reverse Charge Mechanism, Referencing Key Rules A corporate office in Delhi inquires about service tax liability under the reverse charge mechanism for freight payments to a Goods Transport Agency (GTA) service in Jammu. Experts reference Rule 10 of the Place of Provision of Service Rules, 2012, and Rule 2(1)(d) of the Service Tax Rules, explaining that the liability depends on the location of the corporate body. If the corporate body is registered in a taxable territory, it is liable to pay tax. However, if both the service provider and recipient are in a non-taxable territory like Jammu, service tax may not apply. The discussion emphasizes the complexity of determining tax liability in such scenarios.