Query on gta

This query is : Resolved

CA Priyanka Goyal (Querist)
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18 December 2014 Dear Sir/Mam
We are a private limited company, registered under central excise. We use to sell FOR Goods manufactured by us to the registered private limited companies (buyer).
We raise the invoice as below
Basic Value 100
Excise duty (12.36%) 12.36
VAT(5%) 5.618
Total 117.978
Transportation Charges 30
Grand Total 147.978
Risk during the period of transport remains with us i.e. on supplier (as per PO). As per PO, the contract is to supply the Goods at the place of buyer. For the above transportation facility, we use to engage outside individual truck owner who are self employed and pay them Rs. 20. No any consignment note is issued by the agency, goods carries only excise invoice raised by us as above.
My query is who is liable to pay Service tax on the above transport facility i.e. Supplier or Buyer and on what value Rs. 30 or Rs. 20 paid to agency. Whether any excise implications also involved in it. If possible plz give the reference of any case law, I will be highly obliged to you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 December 2014 According to Reverse Charge Mechanism, payment of service tax liability for the services provided by GTA is on the service receiver.

The consignor or consignee whoever pays the freight is liable to pay service tax if such consignor or consignee is any one of the following:
Any factory registered under the Factories Act.
No excise implications involved in it.
Pay service tax on Rs 20 under GTA and Rs 10 on business auxiliary service.