18 May 2012
We are a Custom house agent engaged in customs clear the imported goods on behalf of importers. After the clearance, we engage transport on behalf of importer and transport the goods to importer premises. While engaging transport, the actual transporter who carries the goods, bill to us and we in turn bill it to importer as reimbursement. in this particular transaction, neither actual transporter charges service tax nor we charge the service tax on transport charges. Kindly let me know in this type of transaction, who is liable to pay service tax to service tax authority.
18 May 2012
Concept of reverse charge is applicable in case of services provided by Goods Transport Agency. Accordingly you are liable to pay service tax on the services availed.