GTA - service tax pmt, Service Tax

[venkat eswaran]

Sir / Madam,

we are paying service tax for frt inward & outward GTA- on behalf of transporter. that is Service receiver liable to pay service tax. under the new service tax rules service tax to be paid even when the bill raised by the service provider (General) instead of pmt received date.  Whether this is applicable to GTA also? my question is whether we have to pay service tax on receipt or date of credting the bill basis OR we can pay  service tax after we make the pmt to the transporter? Pl help me on this.

G Venkateswaran

 

Posts / Replies

[Pradeep Khatri]

Rule 2A inserted in the POTR 2011 to define the date of payment as the earlier of the dates on which the payment is

––entered in the books of accounts or

––credited to the bank account of the person liable to pay tax except in certain specified cases

[r swaminathan]

In case of services where the receipient is obliged to pay service tax under rule 2(1)(d) of service tax rule, ie on reverse charge basis, the point of taxation shall be the date of making the payment. However if the payment is not made within six months of the date of invoice, the point of taxation shall be the date of invoice. In case of associated enterprises, when the service provider is outside India, the point of taxation will be the earlier of the date of credit in the books of account of the service receiver or the date of making the payment.