Transport of Goods by road

[guna ch]

Dear Sir/s

Kindly suggest me is any changes made Service Tax Payment of GTA

Before Receiver is Liable to pay Service tax , But Now is it changed from the receiver to provider

Kindly Suggest me the Amendment notification

[YAGAY andSUN]

Under GTA Services, whoever pays the freight is liable to pay the service tax under reverse charge mechanism w.e.f. 01-07-2012.

 

[guna ch]

Kindly suggest me the notification no and details where i can find more details

[YAGAY andSUN]

Notification No. 30/2012-ST dated 20-06-2012.

[guna ch]

Thank You Sir....

Again another doubt raised as per the notification,  Service receiver should pay 100% of Service Tax . But it is earlier it had  75% abatement even now we are following the same abatement system is it wrong

 

[rajkumar shukla]

100% is the liability for payment of tax only. In other words the person liable to pay tax will pay the entire tax payable. Abatement is still there which is 75% subject to conditions.

[JAMES PG]

As per the provisions, the person who pays freight or liable to pay freight either by himself or through an agent is laible to pay ST. This would imply that even if an assessee is not paying freight directly to the transporter but pays to the supllier of goods through separate charging of freight in the Invoice, liability is fastened on the receiver subject to the terms of sale

[guna ch]

Thank you sir for your valuable replay

I have another doubt sir

If Supplier collect the freight  ( Including ST) from customer then who can avail the CENVAT in the case of manufacturing firm 

AI Summary

Reverse charge on goods transport agency services shifts tax payment to the freight payer while abatement remains applicable. The Reverse Charge Mechanism makes the person who pays freight-whether directly, through an agent, or via a supplier charging freight on the invoice-liable to pay the service tax on GTA services; payment liability rests with that freight payer, while the statutory abatement for GTA services continues to apply subject to conditions. A practical question remains as to which entity may claim CENVAT credit when the supplier collects freight (including service tax) from the customer.