Transport charges Service Tax in their transportation bill, Service Tax

[SWAMINATHAN RAMANATHAN]

Transport Corporation of India charging service tax n their Transportation bill.

The onus of discharge of service tax liability in the case of GTA is on the consignor or consignee whosoever makes payment to the transporter. The burden of discharge of service tax liability can’t be shifted to the service provider i.e. transporter  with reference to S.No. I (A) (ii) (e) of the  Notification No. 30/2012-ST

Kindly advice whether the service tax payable by consignor or consignee directly Govt., or  pay to TCI.

 

Posts / Replies

[Pradeep Khatri]

Please ask TCI to produce the Service Tax Regisratio Certificate,if they are regisrtered as GTA then discuss it will the Department that how can a transport company act as GTA.

The ultimate responsibility/liabilty to pay the service tax is either on consignor or consignee who so ever pays the freight bill.

[CA Seetharaman K C]

The Consignor or Consignee would be liable to discharge the Liability of Service Tax 

provided or agreed to be provided  by a goods transport agency in respect of  transportation  of goods by road, where the  person liable to pay freight    is,—

            (a)  any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

            (b)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

            (c)  any co-operative society established by or under any law;

            (d)  any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

            (e)  any body corporate established, by or under any law; or

            (f)  any partnership firm whether registered or not under any law including association of persons;

So if you fall under any of the above categories you would be liable to pay the Service tax. Please refer to reverse charge notification no 30/2012 dated 20-06-2012.

[SWAMINATHAN RAMANATHAN]

Thank you sir.