I want to know whether a GTA is required to obtain service tax registration? What is the threshold limit? Also, is GTA liable to collect service tax from consignee when the consignee is not registered for service tax?
08 November 2011
Under GTA service the person liable to pay service tax is one who has paid freight (either consignor or consignee) as per Rule 2(i) (d) of Service tax Rules, 1994. But in case freight is not paid by service receiver then Goods transport agency will pay service tax and can collect it from service receiver.
As regards to registration, if gross receipts in preceding financial year is Rs. 9 lacs or more then it is required to get registered.
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