Gta service taxation

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This query is : Resolved

Brijesh Pandey (Querist)

15 July 2015 The single consignment upto Rs.750/- is exempted and on consignment basis upto Rs.1500/- is exempted.
The service tax paid on under reverse charge on Freight Inwards on GTA is cenvatable, but the Service tax paid on Freight outwards is not cenvatable.
In case the GTA is individual or Firms than the service receiver need to pay tax on 30% of value of freight.

But my question is in case the material vendors is charging the freight in his invoice and we are paying than are we liable to pay tax on the freight included in purchase invoice.

If the freight bill is separately given than we are paying the tax.

Looking forward your reply.

Regards:
Brijesh Pandey
(9088263019)

PAWAN KUMAR

PAWAN KUMAR (Expert)

15 July 2015 The service tax liability in case of reverse charge mechanism for transporatation of goods by road service provided by the Goods transport agency is on service receiver which can either consignee or the consignor. The person who pays freight to GTA is liable.
Now as per your question, supplier of material is charging freight in invoice and in this case supplier is paying freight to GTA and claim the same from you. You are not liable for service tax as you are not directly paying freight to GTA. your supplier is paying. Since your supplier is making payment to GTA, he is liable for service tax.

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