Gta service

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2013 Whether service tax should be paid by service receiver on goods transport service (GTA)if freight is related to domestic transportation of goods but goods is finally exported by service receiver

Ganeshbabu K

Ganeshbabu K (Expert)
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24 June 2013 Please refer my opinion in this as below with explanation provided on my understanding

1)service receiver is liable to pay GTA service tax.

2)Person liable to freight is liable to pay service tax on GTA if he is body corporate, factory, registered dealer under Central excise, society, cooperative society, partnership firm (registered or not).and he is called as service receiver..

so refer payment terms and confirm who is service receiver

3)GTA is liable to pay service tax if (a) person liable to pay freight is individual or HUF (b) Person liable to ay freight is outside taxable territory

so if service receiver is out side taxable territory GTA is liable to discharge service tax

Thanks & regards
Ganesh babu k

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 In my query service receiver is a Company situated in india which is paying freight hence ST liability is of Company ie service receiver but my query is still open i want to know that freight(Road) paid for goods to be exported whether liable for ST or not

Ganeshbabu K

Ganeshbabu K (Expert)
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25 June 2013 1)who is responsible for payment of freight..

see payment terms of transaction,

you or customer..

if you are responsible for payment of freight you are considered as service receiver and you need to discharge service tax

if customer is liable for payment of frieght GTA will be liable for payment of frieght

Thanks & regards
Ganesh babu k

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