• Advertise
  • Membership
  • Sign inSUBSCRIBE
Legal Era
X
Sign in
  • Home
  • News
    +
    • From the Courts
    • Policy & Law
    • Supreme Court (India)
    • High Court (India)
    • TAX Updates
    • MARKET WATCH
    • Deal Street
    • Global Insights
    • IBC Cases
    • Hires & Moves
    • IP News
    • Competition Verdict
  • Articles
    +
    • ABOUT THE LAW
    • AWARDS & ACCOLADES
    • Aerospace
    • Agriculture
    • Alternate Dispute Resolution
    • Banking and Finance
    • Bankruptcy
    • Book Review
    • Bribery & Corruption
    • Commercial Litigation
    • Competition Law
    • Conference Reports
    • Consumer Products
    • Contract
    • Corporate Governance
    • Corporate Law
    • Covid-19
    • Cryptocurrency
    • Cybersecurity
    • Data Protection
    • Defence
    • Digital Economy
    • E-commerce
    • Employment Law
    • Energy and Natural Resources
    • Entertainment and Sports Law
    • Environmental Law
    • FDI
    • Food and Beverage
    • Health Care
    • IBC Diaries
    • Insurance Law
    • Intellectual Property
    • International Law
    • Labour Laws
    • Litigation
    • Litigation Funding
    • Manufacturing
    • Mergers & Acquisitions
    • NFTs
    • Privacy
    • Private Equity
    • Project Finance
    • Real Estate
    • Risk and Compliance
    • Technology Media and Telecom
    • Tributes
    • Zoom In
    • Take On Board
    • In Focus
    • Law & Policy and Regulation
    • IP & Tech Era
    • Viewpoint
    • Arbitration & Mediation
    • Tax
    • Student Corner
  • Law Firms
  • In-House
  • Rankings
  • E-Magazine
  • Legal Era TV
  • Events
  • News
    • From the Courts
    • Policy & Law
    • Supreme Court (India)
    • High Court (India)
    • TAX Updates
    • MARKET WATCH
    • Deal Street
    • Global Insights
    • IBC Cases
    • Hires & Moves
    • IP News
    • Competition Verdict
  • Articles
    • ABOUT THE LAW
    • AWARDS & ACCOLADES
    • Aerospace
    • Agriculture
    • Alternate Dispute Resolution
    • Banking and Finance
    • Bankruptcy
    • Book Review
    • Bribery & Corruption
    • Commercial Litigation
    • Competition Law
    • Conference Reports
    • Consumer Products
    • Contract
    • Corporate Governance
    • Corporate Law
    • Covid-19
    • Cryptocurrency
    • Cybersecurity
    • Data Protection
    • Defence
    • Digital Economy
    • E-commerce
    • Employment Law
    • Energy and Natural Resources
    • Entertainment and Sports Law
    • Environmental Law
    • FDI
    • Food and Beverage
    • Health Care
    • IBC Diaries
    • Insurance Law
    • Intellectual Property
    • International Law
    • Labour Laws
    • Litigation
    • Litigation Funding
    • Manufacturing
    • Mergers & Acquisitions
    • NFTs
    • Privacy
    • Private Equity
    • Project Finance
    • Real Estate
    • Risk and Compliance
    • Technology Media and Telecom
    • Tributes
    • Zoom In
    • Take On Board
    • In Focus
    • Law & Policy and Regulation
    • IP & Tech Era
    • Viewpoint
    • Arbitration & Mediation
    • Tax
    • Student Corner
  • Law Firms
  • In-House
  • Rankings
  • E-Magazine
  • Legal Era TV
  • Events

Top Stories

HomeNews
13 Jan 2022 4:45 AM GMT

Services provided by GTA under the Reverse Charge Mechanism to Registered Factories subject to Service Tax: CESTAT

By: Susmita Ghosh
Services provided by GTA under the Reverse Charge Mechanism to Registered Factories subject to Service Tax: CESTAT

Services provided by GTA under the Reverse Charge Mechanism to Registered Factories subject to Service Tax: CESTAT Under the reverse charge mechanism (RCM), the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has held that GTA services provided to registered factories will be subject to service tax. A department order was passed against the appellants for the...

ToRead the Full Story, Subscribe to Legal Era

Access the exclusive LEGAL ERAStories,Editorial and Expert Opinion

Subscribe Now
AlreadyaSubscriber?SigninNow
View Plans


Services provided by GTA under the Reverse Charge Mechanism to Registered Factories subject to Service Tax: CESTAT

Under the reverse charge mechanism (RCM), the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi bench has held that GTA services provided to registered factories will be subject to service tax.

A department order was passed against the appellants for the GTA services provided by them to the proprietorship concern. On the basis that since the proprietorship concern was the intended recipient of GTA services provided by the appellant, the Reverse Charge Mechanism was not applicable and the appellant must pay service tax.

Such proprietorship concerns, as per the appellant, are factories under the Factories Act/ Rules. Therefore as per section 68(2) of the Act r/w Notification 30/2012-ST on 20th June, 2012, the recipient of the GTA services, who made the payment of freight, was responsible for paying the total service tax.

Judicial member, Mr. Ajay Sharma, allowed the appeal on the ground that the certificates issued by the respective state governments, verifying that the proprietary concerns are registered as factories, were also submitted to the authorities concerned and before me too.

As a result of reading the same, it is inevitable that the proprietary concern to which GTA services were provided by the appellant was an authorized dealer of Piggio Auto and was registered as a factory. Hence in accordance with Section 68(2) ibid in conjunction with the Notification (supra), those businesses are liable to pay service tax under reverse charge mechanism. Accordingly, the demand for the period April 2016 to June 2017 is also likely to be set aside.

Though the appellant has also raised the issue of threshold exemption under notification no.33/2012-ST on 20th June, 2012, the Tribunal has held that since the proprietary concerned is registered as factories, they must pay service tax under reverse charge mechanisms, so it will not be considered as the threshold exemption issue."

Susmita Ghosh

Susmita Ghosh

TAGS:
  • Services 
  • GTA 
  • Reverse Charge Mechanism 
  • Registered Factories 
  • Service Tax 
  • CESTAT 
  • Judicial member 
  • Mr. Ajay Sharma 
  • appellant 
  • authorized dealer 
  • Piggio Auto 
  • threshold exemption 
Next Story
Similar Posts
See More
Trending Now
CAM

CAM advises DFC for External Commercial Borrowing

Tax on Alimony

Tax on Alimony

Janhit-Mein-Jaari

Copyright infringement: Bombay High Court directs removal of

Recognising Eminent Legal Professionals, In-house Legal Teams, and Law Firms shining brightly from the Middle East at the 2nd Annual Legal Era Middle East Law Awards 2021

Recognising Eminent Legal Professionals, In-house Legal

Recommended Articles
  • News
  • From the Courts
  • Supreme Court (India)
  • High Court (India)
  • Global Insights
  • Deal Street
  • Hires & Moves
  • Refund & Cancellation Policy
  • Articles
  • Zoom In
  • Take On Board
  • In Focus
  • Law & Policy
  • IP & Tech Era
  • Viewpoint
  • Arbitration & Mediation
  • Tax
  • Student Corner
  • Interviews
  • Law Firms
  • E-Magazine
  • Legal Era TV
  • Membership
  • Reader's Feedback
  • Cartoons
  • Subscribe
Follow Us
Subscribe Newsletter
  • 2022© All rights reserved Legal Era Media Group
  • Who We Are
  • Careers
  • Advertise with Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
Powered by  Hocalwire
X
X