Is GTA liable for service tax?
Is GTA liable for service tax?
Taking into account the special nature of the goods transport agency (GTA) service, it is being exempted from the payment of service tax unconditionally to the extent of 75% of the freight. In other words, service tax is required to be paid only on 25% of the freight irrespective of who pays the service tax.
Is GTA to GTA service exempt?
To qualify as services of GTA, the GTA should be necessarilyissuing a consignment note. Only services provided by a GTA are taxable under GST. Services of transportation of goods by a person other than GTA are exempt.
What is the exemption limit for service tax?
Rs.10 lakhs
Even if a service provider providers services from multiple premises, service tax exemption is available, provided the aggregate value does not exceed Rs. 10 lakhs in a financial year.
What is the rate of GST on GTA?
13/2017- Central Tax (Rate) dated 28th June, 2017) are required to pay GST under RCM….What is the rate of GST on GTA?
| Service by a GTA | GST rate |
|---|---|
| Transporting goods (GST paid by GTA)* | 5% No ITC or 12% with ITC |
What is service tax rate in India?
15%
Service tax is charged at the rate of 15% currently. The taxability arises once the value of services exceeds Rs. 10 lakhs during the financial year. It is very important to identify the place of service provision as the tax is levied on services rendered in taxable territory.
Who is responsible for service tax on transportation?
As per clause B of Rule 2(1)(d) of Service Tax Rules, 1994 any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage is liable to pay service tax.
Who pays GST in case of GTA?
5% GST rate is applicable for transportation service by GTA on RCM basis means GST is payable by recipient. (NO ITC to transporter). 12% GST rate on forward charge basis (ITC is available to transporter). Services provided by GTA to unregistered person is exempt except if he adopts to pay GST on forward charge basis.
What is GTA in income tax?
The HSN Classification is as follows: Heading 9965 – Services of Goods transport agency (GTA) in relation to transportation of goods (including used household goods for personal use) GST Rate 2.5% – Provided that credit of input tax charged on goods and services used in supplying services are not taken by GTA.
Who is eligible for service tax?
Although Service Tax is required to be paid only when the aggregate value of services provided exceeds Rs. 10 Lakhs in a financial year, the service tax provider is required to apply for Registration for Service Tax within 30 days of his turnover exceeding Rs. 9 Lakhs.
Who will pay GST in GTA?
In all other cases where GTA service is availed by persons other than those specified, the GTA service supplier is the person liable to pay GST. The GTA service supplier is not entitled to take ITC on input services availed by him if tax is being charged @ 5% (2.5% CGST + 2.5% SGST).
Is company registered to bill with 5% RCM basis as a GTA?
The rate of tax on such GTA Services under RCM basis would be 5%….When GTA services on RCM basis is an inter-state supply and an intra state supply?
| Recipient | Place of Supply |
|---|---|
| Registered Person | Location of Registered Recipient |
Is GTA required to include ancillary services in invoice?
CBEC has clarified with circular no. 186/5/2015- ST that ancillary service like loading, unloading, packing, unpacking, transshipment, temporary storage etc. provided by GTA along with transport service are considered as composite service and abatement of 70% is allowed on these services. GTA is required to include those service in invoice.
Who is not liable for service tax on transportation of goods?
In other words, if any person is providing service of transportation of goods by road, and is neither covered under the statutory definition of GTA, nor under courier agency, then he is not liable to pay any service tax on such transportation. 5. Reverse Charge on GTA 5.1 We are a Partnership Firm.
Is there any specific act like Service Tax Act?
It is quite surprising to know that unlike other central taxation laws like Central Excise Act, 1944; Customs Act, 1962; Income Tax Act, 1961; Central Sales Tax Act, 1956; etc; there is no specific act like Service Tax Act.
Is service tax tangible or intangible?
It is significantly different from excise duty and sales tax, where the tax is levied on goods, which are tangible. The taxable event for levy of service tax is the rendering of service, which is intangible.
