Pl resolve my query about gta reverse mechanism service tax

This query is : Resolved

ACS VINIT GOYAL (Querist)
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18 August 2015 Dear Seniors

I have a query on GTA reverse mechanism on service tax pl help me

If I send and transport the goods to my local and outsider client through courier service like fedex etc. then i will be pay the service tax @ 14% as (100%) because courier agency charge the service tax from me on their bill and i have to pay. AND courier agency can also give me a consignment note.

But I send the transport the good to my local and outsider client through Good transport agency then i will be pay service tax as a service receiver 30% of 14% under reverse mechanism

So i send and transport the goods through GTA then i CAN save service tax 70%

is it possible to save tax ???

Any different registration for GTA and courier agency ??
how is define a particular agency is GTA and courier agency ??

Pl give me solution

Vinit Goyal
M-9999426498

Jayant Bothra

Jayant Bothra (Expert)
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18 August 2015 Dear Vinit,

There is a thin line difference between these two services. That difference is of ‘Consignment note’. The essential elements of Consignment note’s are –

• Name of Consignor & Consignee
• Registration number of Goods Carriage in which goods is transported
• Details of Goods Transported
• Details of place of origin and destination

The Courier agency issues the note which duly contains all the aforesaid features except the ‘Registration number of Goods Carriage in which goods is transported’. If such detail is also incorporated then it will fall under ‘Transport of goods by road’ Service alia GTA Service.

If it is feasible to transport the goods through GTA then you can save the service tax provided you are paying to GTA, if your counterpart is directly paying to GTA then you need not to pay service tax.

If you are liable to pay service tax under GTA then you also need to amend the registration certificate as well.

Thanks & Regards
CA JAYANT BOTHRA
email: ca.jayantbothra@gmail.com

ACS VINIT GOYAL

ACS VINIT GOYAL (Querist)
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18 August 2015 Dear Jayant Sir

Thanks a lot for your immediate valuable reply

Sir, Can we check that particular transport company registered as a GTA OR courier agency through their service tax Registration number in any website, is it possible??

and under GTA liability of ST is the service receiver to govt OR we can pay the ST to the company along with their bill payment ??? is it right way discharge of our paying service tax ??

Thanks once again

Regards
Vinit Goyal

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