Reverse charge on goods transported by individuals & gta

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This query is : Resolved

Guest

Guest (Querist)

12 August 2013 In Transport of goods by road, Is goods received by a dealer of goods has to pay service tax in the new negative list applicability from 01.07.2012.
1. if the transporter is a GTA
2. If the transporter is individual transporter and not the GTA.

Kindly explain the above with an example.

Thanking you

RENGARAJ R.K

RENGARAJ R.K (Expert)

12 August 2013 It is clear for service provider in 1) & 2) but service recipient's status is mentioned as dealer. You must specify the dealer's business entity like, individual, firm, company, factory registered under excise/vat/factories act etc.,

Any how, the reply is 1) The transporter is GTA and receiver is specified person. Here only service recipient is liable to pay.
2) When GTA is individual, if he is not issuing consignment note, according to the definition and rules, liability does not arise.

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Ganeshbabu K

Ganeshbabu K (Expert)

12 August 2013 Service tax under reversecharge is not payable by the receiver of goods..it is payable by person responsible for payment of frieght..

however if individual is responsible for payment of frieght GTA is liable to pay service tax under reversecharge

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