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TMI BlogService Tax on GTA on RCMX X X X Extracts X X X X X X X X Extracts X X X X ..... Service Tax on GTA on RCM X X X X Extracts X X X X X X X X Extracts X X X X ..... ommission of ₹ 15000 from its customers(C) and showing it under Sales in profit and Loss A/c and earning commission of ₹ 5000/- in the transaction. C is paying Service tax under RCM on ₹ 15000/-.Whether in this case B is also liable to pay service tax on RCM basis on ₹ 10,000/-??? Will this not lead to double taxation on part of B if C is paying service tax on entire ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 15000/-???? As we hire services other GTAs to whom we as agents pay transportation charges and thereafter seek reimbursement from the respective clients for whom the transportation was arranged. We first books the transportation in our books on payment to the other GTA and thereafter charge the client for reimbursemet. Just because we booked the transportation expenses in our books, will it amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt to us being considered as the service receiver (rather than the client)and consequently be liable to pay servic tax under the reverse charge mechanism?? Reply By PAWAN KUMAR: The Reply: Dear Belose Ji, B is not liable for service tax at all. As per my view, as C has discharged the service tax liability because in case of freight either consignee or the consignor who pays the freight to GTA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is liable for service tax. The actually liability of which who paid the freight to GTA which is A. X X X X Extracts X X X X X X X X Extracts X X X X
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