Goods Transport operator(GTO)

[Rajiv Sinha]

Pls explain me some doubt regarding service tax.

Our company is a manufacturing company.and registered as a GTO(Goods Transport operator)in service tax department.sir my question is as follows.weather we are correct or not.

1) i deposit service tax on those transporter,who already registered in service tax department and charging service tax in his bill.(We are debting service tax amount to him and deposit service tax by our account).am i correct.

2)We are depositing service tax on those transporter,who are registered or not registered in service tax department and not charging service tax in his bill.

3)if we are not depositing service tax because transporter is registered in service tax and charging service tax in his bill and deposit to the department.

4)If we are taking abatement on bill,should we take confirmation letter from transporter for he is not taking cenvat credit.

Thanks,

Rajiv Sinha

AI Summary

Reverse charge liability requires the recipient to pay service tax on GTO services and retain evidence of deposit.
Recipient liability under reverse charge requires the manufacturing unit engaging a Goods Transport Operator to discharge service tax and file returns; retain proof of tax deposit when tax is paid under reverse charge. Post amendment to the Cenvat Credit Rules, the recipient need not prove non availment of CENVAT credit by the transporter. If taking abatement, obtain written confirmation from the transporter that it is not claiming CENVAT credit, or endorsement on transport documents, to support recordkeeping.