Global Transport Agency

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Anil Chavan (Querist)
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25 February 2008 Hi Sir / Madam

I have a confusion in GTA that If we are paying some amount to Transport co. & transporter is not levied a service Tax in bill. then it is our liability to pay service tax.
But on that time Our sale against service tax is below Limit even that condition I have to pay the tax or not.
And if yes then 25% or 75% of the taxable amount?
And if we paid the service tax on transporter's behalf then can we deduct a amount of service tax from his payment?

K V Subba Rao

K V Subba Rao (Expert)
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25 February 2008 GTA stands for Goods Transport Agency but not Global Transport Agency

Liability for payment of Service Tax to the Govt., dwells on the Service Tax PROVIDER

In case of Goods Transport, the GTA is the Service Provider. He may pay this amount to the Govt., by (a) charging additional amount specifically towards Service Tax over and above freight or (b)bear it himself by appropriating a portion of the freight amount (Freight x 12.36 / 112.36). Responsibility for complying with statutory provisions lies on the GTA but not on the Consignor or Consignee.

Cosignee has no responsibility whatsoever to make payment of Service Tax to the Govt

There are exceptions to the above position where transportaion is done for Limited Companies etc for which you may refer any book on Service Tax or visit https://www.ieport.com/service_tax/circulars/circular-04/instructions.htm

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