GTA - service tax pmt

[venkat eswaran]

Sir / Madam,

we are paying service tax for frt inward & outward GTA- on behalf of transporter. that is Service receiver liable to pay service tax. under the new service tax rules service tax to be paid even when the bill raised by the service provider (General) instead of pmt received date.  Whether this is applicable to GTA also? my question is whether we have to pay service tax on receipt or date of credting the bill basis OR we can pay  service tax after we make the pmt to the transporter? Pl help me on this.

G Venkateswaran

 

AI Summary

Point of taxation: reverse-charge services taxed on date of payment, with invoice-date fallback if payment delayed, and earlier-of-book-entry-or-bank-credit rule.
For reverse-charge services, the point of taxation is the date of payment by the recipient; Rule 2A treats date of payment as the earlier of entry in books or credit to bank (subject to exceptions). If payment is not made within the prescribed six month period from invoice, the point of taxation is the invoice date. For associated enterprise services from outside India, the point of taxation is the earlier of book credit or payment.