To
Sirs,
One assessee is providing transportation service to corporate body. The assesee is registered under Service Tax Department as GTA. Hence RCM comes into play. The recipient of the service is liable to pay Service Tax but in this instant case the corporate body/army is paying the freight.
I am of the view that GTA in this instant case is liable to pay Service Tax.
advice /suggestion is highly solicited.
with regards,
Immanuel Neihsial,
Siliguri
Corporate Body Liable for Service Tax on Freight Payments Under RCM; Exemption for Defense Goods Per Notification 25/2012. An individual inquired about the liability for Service Tax in a scenario where a transportation service is provided to a corporate body, with the freight being paid by the corporate body or army. Four responses were given. The consensus was that the person or entity paying the freight is liable for the Service Tax under the Reverse Charge Mechanism (RCM). A specific exemption applies if the transported goods are defense or military equipment, as outlined in notification no. 25/2012. If the goods are not exempt, the corporate recipient must pay the Service Tax. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
