Consignment note

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2013 kindly help me in solving my doubt.

my question is-

A) a goods transport agency issue consignment note in which he does not charge service tax amount on freight but he has service tax registration no. then whether the consignee will pay amount of service tax on freight bill?

B) if a consignor pay freight on consignment note in which service tax is not charged seperately where cosignment note is having service tax registration no written on it, do the consignor have to pay service tax on freight amount?

C) if gta issue to pay consignment note in which service tax is not charged despite gta is registered in service tax, then consignee will pay freight amount and also will consignee have to pay service tax on freight bill? kindly reply me soon. i am getting this difficulty while doing audit of a trading concern of a proprioter. kindly explain in detail with appropriate example.

regards-

Hardik Dave.

Ganeshbabu K

Ganeshbabu K (Expert)
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24 June 2013 1)In case of GTA service service receiver is liable to discharge service tax under reversecharge..

2)Who is service receiver?

please refer payment terms of transaction(purchase/sale) who is responsible to make payment for frieght is considered as service receiver and he is responsible to discharge service tax under reversecharge and the same person can take cenvat on service tax paid under reversecharge..

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)
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24 June 2013 Ex: A ltd made sales to B Ltd and used GTA for transportation to B ltd, as per payment terms Customer(Bltd) is liable to pay frieght amount, but A made payment for frieght and claimed the same from B ltd in invoice..who is liable to pay service tax and who can avail cenvat?

Ans.

1)as per payment terms Customer is liable to pay freight so B is liable to discharge service tax on GTA and he only can avail cenvat on payment of service tax as per GAR-7 basis.

2)yes.even though A ltd paid and claimed in invoice..it means A ltd paid on behalf of customer (Bltd) and the same was claimed in invoice it does not shift GTA liability to Altd..and B ltd is liable to pay service tax and it cannot be changed in any way

Thanks & regards
Ganesh babu k

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