reverse charge in GTA services, Service Tax

[AAKASH KUMAR]

Dear expertsWho will pay the service tax in the following cases:-1. services provided by GTA to a SSI unit engaged in manufacturing of goods. Both the consignor and consignee are having clearances below ₹ 90 Lacs and are not registered both under central excise and service tax. Then how they can pay ST. 2. On GTA services where both the consignor and the consignee are proprietary firms. Please reply. Thanks and regards.

Posts / Replies

[Ravi Kumar Somani]

Service tax shall be liable to be paid by service receiver under reverse charge even if the manufacturer is SSI unit or if the turnover is less than 90 lakhs. However, liability under reverse charge shall not apply if the person paying freight is a proprietary concern.

[Madhukar N Hiregange]

The specified person includes a factory if I am not mistaken as a factory under factories act is covered. Would require to register and pay unless the transportation is under GTO and not GTA.