GTA SERVICES
This query is : Resolved
06 March 2009
Dear friends,
Kindly go thorough the following query and offer your valuable answer:
1. The status of GTA is properietor ship Firm. The status of both consignor and consignee is Company.
2. The frieght was paid by consinor always.
3. The transporter in all the consignment notes given to the consignor, charges service tax and also collected the same from consignor and paid to the Govt.
Normally as per the Act, in the above said situation, the consignor is liable to pay service tax. However the transporter collected the tax and paid the same to the Govt.
Is again the Consignor is liable to pay Service tax ?
Kindly provide the answer with proper notification/circur/section, if any.
Veeresh
Kindly go thorough the following query and offer your valuable answer:
1. The status of GTA is properietor ship Firm. The status of both consignor and consignee is Company.
2. The frieght was paid by consinor always.
3. The transporter in all the consignment notes given to the consignor, charges service tax and also collected the same from consignor and paid to the Govt.
Normally as per the Act, in the above said situation, the consignor is liable to pay service tax. However the transporter collected the tax and paid the same to the Govt.
Is again the Consignor is liable to pay Service tax ?
Kindly provide the answer with proper notification/circur/section, if any.
Veeresh
06 March 2009
Consignor is not absolved of his responsibility even if GTA collects and pays Svc Tax to the Govt. Study the following extracted from an Article
"The provisions relating to GTA allow a GTA to pay the service tax only if the recipient of the service is an individual or unregistered firm as per Rule 2(i)(d)(v). This means that if GTA were to collect the service tax from others, he would be doing so without authority of law. Section 73 A (2) sets out that any person who has collected any amount, which is not required to be collected as representing service tax, would be required to pay the amount to the credit of the central government.
The primary liability on the recipient however would not be discharged where the GTA pays the service tax so collected. The specified persons are required to pay the service tax on their own account. ( see question 1)
For the past the receiver may pay with the interest and the GTA could go for a refund".
Source: https://www.caclubindia.com/articles/article_list_detail.asp?article_id=1182
"The provisions relating to GTA allow a GTA to pay the service tax only if the recipient of the service is an individual or unregistered firm as per Rule 2(i)(d)(v). This means that if GTA were to collect the service tax from others, he would be doing so without authority of law. Section 73 A (2) sets out that any person who has collected any amount, which is not required to be collected as representing service tax, would be required to pay the amount to the credit of the central government.
The primary liability on the recipient however would not be discharged where the GTA pays the service tax so collected. The specified persons are required to pay the service tax on their own account. ( see question 1)
For the past the receiver may pay with the interest and the GTA could go for a refund".
Source: https://www.caclubindia.com/articles/article_list_detail.asp?article_id=1182
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