Service Tax on Goods Transport Agency

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SHAAN (Querist)

15 June 2010 Can anyone answer these three questions.

1. In case of purchase of cements the seller has issued Invoice for value which is inclusive of transportation carges (not mentioned seperalty). whether GTA is applicable on such transportation charges.If yes who is liable to pay it.

2. Whether GTA is applicable on transportation charges paid for transport of goods from one site to another site which are in different cities/States.

3. Whether GTA is applicable in case of local transportation of goods.

Querist : Anonymous

Querist : Anonymous (Querist)

15 June 2010 which reference books should we follow for
law
audit and
mics?

Shyam Lal Naik

Shyam Lal Naik (Expert)

15 June 2010 Answering the 2nd query.

1. In specified circumstances, the consignor or consignee, who ever pays the freight is liable to pay service tax. In the facts of the query, the seller is making payment of the freight. Hence, the service tax liability is on the seller on the actual freight paid to the GTA.

Recovery of expenses on account of transportation charges is not a taxable service.

2 & 3. To be taxable under GTA, there should be a Goods Transport Agency rendering service of transport of goods by road. Whether it is local transport/inter city/inter state is not relevant.

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