Gta related

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Ashish (Querist)

13 May 2018 Dear sir
Xyz company give a contract to A (A not covered under GTA) for goods load in a truck from the godown and unload in other site. For this work xyz pay rs 1000 to A. A have not any truck. A contract to B for that work (B cover under GTA). A pay rs 900 rs to B. B issue a consignment note to xyz company.
please guide me what action should be taken by A and B.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 May 2018 GST not applicable on this transport as freight for full truck load is less than 1500.

Ashish

Ashish (Querist)

15 May 2018 Dear sir Xyz company give a contract to A (A not covered under GTA) for goods load in a truck from the godown and unload in other site. For this work xyz pay rs 100000 to A. A have not any truck. A contract to B for that work (B cover under GTA). A pay rs 90000 rs to B. B issue a consignment note to xyz company. please guide me what action should be taken by A and B.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 May 2018 Xyz company has to pay GST under RCM at 5% on 90,000 freight amount for which consignment note issued to the company.

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