Goods transport agency

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SHWETA SADAKA (Querist)

21 February 2014 WHO IS LIABLE TO PAY SERVICE TAX IN CASE OF GOODS TRANSPORT AGENCY UNDER SERVICE TAX ACT?CONSIGNOR OR CONSIGNEE.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 February 2014 who so ever engages the services of the GTA, which would normally be the consignor.

SHWETA SADAKA

SHWETA SADAKA (Querist)

21 February 2014 IN GOODS TRANSPORT AGENCY, UNDER THE REVERSE CHARGE MECHANISM ,SERVICE RECEIPIENT IS LIABLE TO PAY SERVICE TAX VIDE NOTIFICATION NO.30/2012, ACC.TO IT ,SERVICE TAX IS LIABLE TO BE PAID BY CONSIGNEE

motichand gupta

motichand gupta (Expert)

21 February 2014 Some time consignor and consignee may be the same.However, it is generally consignor who is liable to pay service tax.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 February 2014 Dear Shweta,

The said notification nowhere uses the term consignor or consignee. it uses the term "where the person liable to pay freight"

refer https://www.servicetax.gov.in/notifications/notfns-2012/st30-2012.htm

SHWETA SADAKA

SHWETA SADAKA (Querist)

21 February 2014 OK, BUT NORMALLY SPEAKING ISN'T THE FREIGHT IS PAID BY CONSIGNEE AS HE IS THE RECEIPINT OF SERVICE.

Nikhil Kaushik

Nikhil Kaushik (Expert)

21 February 2014 the consignor may recover the freight from the consignee. But think of normal circumstances, when you send a courier, who pays the charges, the sender or receiver?

AJAY SARDA

AJAY SARDA (Expert)

23 February 2014 The person who will paid the Freight will have to discharge the liability if the services rendered by the GTA at one fourth of rate of tax.