Rajiv (Senior Accounts Officer) (1548 Points)
02 August 2016Good afternoon to all my great experts,
I am again hare to get your valuable answer. As per service tax rule, in case of G.T.A service tax is payable by service receiver. but sir in some case in G.T.A some service provider like TCI XPX OMAXE LOGISTICS GATI LTD. ETC. charge service tax in their bill Sir can you tell me the reason why they charge service tax in their bill under gta thanks for your valuable reply
ajay
(Student)
(178 Points)
Replied 03 August 2016
Dear sir,
The following conditions must be satisfied in case of GTA services in order to be covered under reverse change mechanism
1. Service provider should be GTA
2. Service receiver should be Consignor or consignee (other than individual, HUF, governmental agency)
3. Service receiver should be liable to pay freight and he should be located in taxable territory
Conclusion: If the above conditions are not satisfied GTA is liable to pay service tax otherwise service receiver is liable to pay service tax.
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