Service Tax payment on GTA Service, Service Tax

[Deepak Birla]

Before 01.04.2011, when Service tax is to be paid for GTA service under reverse charge. Whether on payment or service provided by GTA?

Posts / Replies

[SHIVKUMAR SHARMA]

Dear Deepak

 

Service tax is to be paid only on the 25% of amount paid to GTA under reverse charge .

 

Shivkumar Sharma

[Shyam Naik]

Dear Deepak,

In case of service tax payable by the service receiver under reverse charge, the tax shall be paid on payment basis.

However, if payment is not made to the service provider(GTA, in this case) within 6 months from the date of the invoice, the point of taxation shall be the date of the invoice.

Please refer rule 7 of Point of taxation rules.

 

Shyam

[Deepak Birla]

Please explain the position before 01.04.2011 when point of taxation rules was not applicable.