Good Transport by Road

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Chirayu Kothi (Querist)
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09 July 2009 Query: 'X' is a manufacturer. 'X' clears his goods from his own truck/tempo/vechical and collects the freight from the buyer.

In above case who is the service recipient and service provider?

who need to pay service tax?

Jitender

Jitender (Expert)
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09 July 2009 if the value is charged for this sevice then it will be paid by X but it can be shifted to the consignee.
if nothing is recovered for it, then no service tax is payable.

CA Bosu babu

CA Bosu babu (Expert)
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10 July 2009 X has to pay for it

Chirayu Kothi

Chirayu Kothi (Querist)
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10 July 2009 But who is service provider her or who is called the GTA?

ADITYA

ADITYA (Expert)
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10 July 2009 Query: 'X' is a manufacturer. 'X' clears his goods from his own truck/tempo/vehical and collects the freight from the buyer.

Your answer is in the query itself, "X" is a manufacturer as well Service Provider of Transport for which he is charging freight from the buyer.

Service Tax (GTA Catagory) is always payable by the person who pays the freight. In your case as buyer is paying Freight, Buyer is liable for Service Tax Payment

Chirayu Kothi

Chirayu Kothi (Querist)
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13 July 2009 Dear Members,

Still I m not on solution for the query i asked.

If 'X' is manufacturer and he clears his goods in his own vehicle than it is not like that he s providing GTA Service to Self.

Because there are three party in other Case if i show: 'A' is GTA giving service to 'X' and clears the goods at 'Y' s door step.

Chirayu Kothi

Chirayu Kothi (Querist)
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14 July 2009 f

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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14 July 2009 In my view since the manufacturer is not a GTA ( he is not an agent of anybody) there is no liability under GTA at all on anybody.
The GTA liability is on the booking agents who issue a consignment note.

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