Please Help: Reverse Charge Mechanism in service tax for GTA
Posted Date : 24-Apr-2013 , 08:11:10 pm | Posted By CA Tushar Patil
Whether Goods Transport Agency has option to go with Reverse Charge Mechanism or it is mandatory for GTA? can GTA switch from Reverse Charge Mechanism & levy service tax in bills & collect the same?
Category : Service Tax | Answers : 2 | Comments : 3 | Hits : 711
Answers
Answer By: Ravi Sanguri
As there is no such type of option , because there are certain conditions to be fulfilled for reverse Charge in case of GTA, if these conditions are satisfied then GTA shall be covered under reverse charge otherwise not.
In short GTA has not a option to go with reverse charge.
In short GTA has not a option to go with reverse charge.
Answer By: Ravi Sanguri
No,
Comments
CA Tushar Patil
25-Apr-2013 , 04:25:49 pmOk. Suppose if specified conditions are satisfied & GTA falls under Reverse Charge Mechanism. Whether he can reject the Reverse Charge Mechanism & go with levy of service tax in bills & collect it from parties?
Sanjeet
27-Apr-2013 , 02:39:11 pmNo, Because in actually service receiver is the person who is liable to pat ST in that case. If he charged the same from receiver that not means that the liability of receiver is over. His liability is separate from GTA and fixed by the Act itself.
Sanjeet
27-Apr-2013 , 02:42:46 pmIf Still Charged the same. Then it will be excess amount received by him as ST and it has to deposit the same with govt and you can take for input or refund for the same as per rules.