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goods transport agency services

648 views 1 replies

Veeresh

55 Points Joined February 2009

Dear friends,

Kindly go thorough the following query and offer your valuable answer:

1. The status of GTA is properietor ship Firm. The status of both consignor and consignee is Company.

2. The frieght was paid by consinor always.

3. The transporter in all the consignment notes given to the consignor, charges service tax and also collected the same from consignor and paid to the Govt.

Normally as per the Act, in the above said situation, the consignor is liable to pay service tax. However the transporter collected the tax and paid the same to the Govt.

Is again the Consignor is liable to pay Service tax ?

Kindly provide the answer with proper notification/circur/section, if any.

Veeresh

Replies (1)

SNEHASREE

ARTICLED ASSISTANT

102 Points Joined November 2008

Under Section 68 of Finance Act, 1994 In relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is, any company established by or under the Companies Act, 1956 (1 of 1956);Consignor is liable to pay service tax. Goods transport company is under Reverse charge where service receiver is liable to pay service tax.