Rate of tax on GTA

[Harishanker Patel]

We are the receipient of service & lible to pay service tax as per rule.

What should be the rate For GTA for below condition-

Service received - Before 01.04.2012

Consignment Note & Bill Date  is - Before 01.04.2012

Service tax charged on bill - 10.3%

Payment Made to Transporter - April'2012.

 

Regards,
Harishankar

 

[YAGAY andSUN]

The applicable rate would be 10.30%.

[Harishanker Patel]

Sir,

Kindly explain the basics for rate on the GTA.

Regards,

Harishankar

[rajkumar shukla]

in my view , point of taxation rules  of Rule 7 will apply in the instant case as G T A is notified under section 68(2) of the Finance Act 1994 hence date of payment made would be the point of taxation. since it is after 1st april 2012 rate of tax would be 12.36% and not 10.3%.

[Harishanker Patel]

Dear Khatri Sir,

I also agreed with the view of Mr. raj kumar shukla.

Kindly look the Notification No.25/2011 – Service Tax & corelate with Circular No. 158/9/ 2012 – ST & confirm regards this matter.

Regards,

Harishankar

[YAGAY andSUN]

Sorry, I had reffered old clarification as mentioned below.  Thanks for updating me.

The various dates have been clarified as follows, vide para 3 of TRU (II) MF(DR) letter F.No.341/34/2010-TRU dated 31-3-2011.

S. No.	Date of completion of service	Date of invoice	Date on which payment recd.	Point of Taxation	Remarks
1.	April 10, 2011	April 20, 2011	April 30, 2011	April 20, 2011	Invoice issued in 14 days and before receipt of payment
2.	April 10, 2011	April 26, 2011	April 30, 2011	April 10, 2011	Invoice not issued within 14 days and payment received after completion of service
3.	April 10, 2011	April 20, 2011	April 15, 2011	April 15, 2011	Invoice issued in 14 days but payment received before invoice
4.	April 10, 2011	April 26, 2011	April 5, 2011 (part) and April 25, 2011 (remaining)	April 5, 2011 and April 10, 2011 for respective amounts	Invoice not issued in 14 days. Part payment before completion, remaining later

[MANDAVILLI RAMAKRISHNA]

GTA need not pay service tax at full rate.

it can pay only on 25% of the 10.30 on abatement basis

but you should not have charged ST at 10.3 from your clients in the invoice raised by you.

 

One more important thing, if you obtain next time when pruchasing trucks, take gate passes and you can

set off the ST liability agains the duty paid.

[rajkumar shukla]

mr. Hari shanker, what do you think of above reply?

[Harishanker Patel]

Dear raj kumar shukla,

I agreed with your view & Mr. Pradeep Khatri sir also assumed that your view is the correct but there is one confusion that wehether we need to ask the transporter to raise supplementory inv with charging us the diffrential service tax amount as as we have to take cenvat credit against said payment also & the transporter charged us service tax @10.3% on said bills.

[rajkumar shukla]

INFACT, MY OBSERVATION WAS RELATED TO REPLY BY MR RAMAKRISHNA  WHICH ACCORDING TO ME WAS NOT PROPER AS YOU CAN NOT TAKE CENVAT WITHABATEMENT WHAT TO TALK OF CENVAT ON TRUCKS. ANY WAY, I DON NOT KNOW  WHETHER YOU ARE LEGALLY LIABLE TO PAY THE TAX UNDER REVERSE CHARGE MECHANISM BEING ONE OF THE SEVEN CATEGORIES AND MAKING PAYMENTS TOWARDS FREIGHT. IF THAT BE SO SERVICE TAX WAS LIABLE TO BE DEPOSITED BY YOU THROUGH CHALLAN. NOW THE DIFFERENCE CAN ALSO BE PAID ALONGWITH INTEREST THROUGH CHALLAN AND CREDIT CAN BE TAKEN BY YOU.  IF YOU WERE NOT LIABLE AND GTA WAS LIABLE ASK HIM TO RAISE DIFFENTIAL INVOICE. (SUPPLEMENTARY INVOICE). CREDIT CAN BE TAKEN BY YOU ON SUPPLEMENTARY INVOICE. LIABILITY MAY BE EXAMINED BY YOURSELF.

AI Summary

Debate on Service Tax Rate for GTA Services Pre-April 2012 with Payment in April: 10.3% vs. 12.36% A discussion on the applicable service tax rate for Goods Transport Agency (GTA) services received before April 1, 2012, with payment made in April 2012. The initial query suggested a 10.3% rate, but another participant argued the rate should be 12.36% due to the payment date. The conversation included references to specific notifications and circulars, with some agreeing on the higher rate and others discussing the implications of abatement and reverse charge mechanisms. There was also a debate about whether a supplementary invoice should be issued for the differential tax amount to claim CENVAT credit.