Reverse Charge on GTA

[Varun Arora]

Dear Experts,

please resolve my query

A proprietorship firm is operating in haryana and another unit(in proprietorship) in karnataka

in this case haryana unit is registered under central excise but karnataka unit is not registered under central excise.

in this case i want to know whether unit is liable to pay service tax under revese charge mechanism for haryana unit or for karnataka unit as well??

because language is 'person registered under excise act' in this case person shall be considered for karnataka unit collectively and liable to pay service tax ?

In this case haryana unit is also transferring goods to karnataka unit in this case service tax paid on this transfer whether eligible for taking cenvat credit.

Thanks in advance.

AI Summary

Firm Queries Service Tax Liability Under Reverse Charge; Haryana Unit Must Pay Freight Tax, Karnataka Transporter Liable. A proprietorship firm with units in Haryana and Karnataka seeks clarity on service tax liability under the reverse charge mechanism. The Haryana unit is registered under central excise, while the Karnataka unit is not. The query asks if both units are liable for service tax and if service tax paid on goods transferred from Haryana to Karnataka is eligible for CENVAT credit. Responses indicate that the Haryana unit must pay service tax on freight and can claim credit, while the transporter is liable for service tax if the Karnataka unit pays freight.