Reverse charge

[Asked by Guest]

Dear Experts,

Please resolve my query

If service Provide (GTA) is Private limited company and service receipient is partnership firm then also reverse charge is applicable means partnership firm has to pay service tax @ 14.5% on gross value after considering abatement of 70%.

Also if service reciepient is a Proprietorship firm registered under central excise as a manufacturer not a dealer then also reverse charge is applicable.

Further Also i didn't offer service tax to government from last 2 years and not obtain service tax number and Now i want to pay can i do so if yes then i have to obtain s.t. number and file the return of current half year and pay interest and penalties,,, Please correct if i am wrong..

Thanks in advance.

[KASTURI SETHI]

Sh.Prem Bajaj Ji,

1 A person who is liable to freight is liable to pay service tax on GTA, only if person is body corporate, factory, registered dealer under Central excise, society, cooperative society, partnership firm (registered or not).

2. You will have to pay service tax along with interest and penalty.Separate penalty for non-registration and late filing of ST-3 return. Maximum Penalty for one ST-3 is ₹ 20,000/-

 

[Ganeshan Kalyani]

Sir I agree with Sri Kasturi Sir's view on both the query. Yes the querist will have to file the returns for all the previous period along with interest and penalty. Also it is essential to check the basic exemption limit of ₹ 10 lacs if the querist is a service provider. For service recipient the basic exemption limit is not applicable. Thanks.

AI Summary

Reverse charge: GTA service recipients in specified categories must pay service tax with registration, returns, interest and penalties.
Reverse charge for Goods Transport Agency services applies when the recipient is a body corporate, factory, registered dealer under central excise, society, cooperative society, or partnership firm (registered or not); proprietorship manufacturers registered under central excise are likewise captured. Recipients liable under reverse charge must obtain service tax registration, file ST-3 returns for prior periods, and pay the tax with applicable interest and penalties, including separate penalties for non-registration and late filing; the basic exemption for service providers does not apply to recipients.