TaxTMI 
TaxTMI 
TaxTMI 
Rate of tax on GTA
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....ate of tax on GTA<br> Query (Issue) Started By: - Harishanker Patel Dated:- 28-5-2012 Last Reply Date:- 30-5-2012 Service Tax<br>Got 9 Replies<br>Service Tax<br>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 ....
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....on bill - 10.3% Payment Made to Transporter - April'2012. Regards, Harishankar Reply By Pradeep Khatri: The Reply: The applicable rate would be 10.30%. Reply By Harishanker Patel: The Reply: Sir, Kindly explain the basics for rate on the GTA. Regards, Harishankar Reply By raj kumar shukla: The Reply: in my view , point of taxation rules of Rule 7 will apply in the instant case as G T A ....
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....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%. Reply By Harishanker Patel: The Reply: 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 -....
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.... ST & confirm regards this matter. Regards, Harishankar Reply By Pradeep Khatri: The Reply: 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 o....
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....f 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 paym....
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....ent 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 Reply By MANDAVILLI RAMAKRISHNA: The Reply: GTA need not pay service tax at full rate. it can pay only on 25% of the 10.30 on abatement bas....
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....is 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. Reply By raj kumar shukla: The Reply: mr. Hari shanker, what do you think of above reply? Reply By Harishanker Patel: The Reply: Dear raj kumar shukl....
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....a, 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. Reply By raj kumar shukla: ....
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....The Reply: 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....
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.... 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.<br> Discussion Forum - Knowledge Sharing ....