( Expert )
16 December 2009
That without baffling, it is simple to note that in service tax provisions primarily, the person who provides taxable service is liable to get registration and pay service tax but in certain cases, the Government is empowered to collect such service tax instead of service provider, from other person in reverse mechanism.
The GTA service is one those in which though the Goods Transport Agency(GTA) is the service provider but the Government being empowered shifted liability to pay tax upon the user. Means who use the GTA service have been made responsible to get registration and pay service tax. However such userâ€™s category has been defined under Rule 2(d)(v) of the Service Tax Rule,1994. In this category partnership firm duly registered has been made liable to pay tax.
In this provision, the GTA is absolutely free from service tax net and comes into net only when provides service other then userâ€™s category as defined under Rule 2(d)(v) of the Service Tax Rule,1994. So introspect your query in the above provisions.
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