GTA Services - Who is liable to pay Tax, Service Tax

[Dipak Rajpara]

Hello,

 

Please help me understand the Provisions of GTA Services. How to decide the Person Liable to pay Services - Transporter, Consignee OR Consignor?

Thanks a lot .

Dipak

Posts / Replies

[Pradeep Khatri]

Whoever pays freight amount would be liable to pay the service tax on the GTA services.

[Yogesh Jain]

Hi Dipak,

If service provider is a transporter registered under GTA then you have to pay service tax on the services availed by you and further you can not take cenvat credit rbut if he is registered under courier act then service provide can collect the service tax from you and will get it deposit to excise deptt on behalf of you, in this case have right to get the cenvat credit of amount paid by you against service tax.

 

Yogesh

 

[NEERAJ KUMAR, RANCHI]

Dear Dipak,

In GTA services if the service recipient is one of the entities listed in the Notification 35/2004-ST in that case service receipients is liable to pay service tax, otherwise Goods Transport Agency issuing consignment note is liable to pay service tax. Among consignor or consignee if they fall in the list as mentionmed in the above said Notification who ever pays the bill will be liable to pay service tax.

 

[raj kumar shukla]

First ascertain whether consignor or consignee(any one)is one out of 7 categories mentioned in Rule2(1)(V) of service tax rule. If anyone is falling under 7 categories then(out of the two) who pays the freight is liable for payment of service tax.