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GTA

vijay (emplyee) (36 Points)

25 August 2007

we have hired GTA for transpotation of our goods up to the place of dealer.we are ltd. company.in our case freight is paid by dealer (i.e.consignee).the servicetax is charged by GTA in bilty (bill).GTA collects the service tax from consignee and pay it to department.however in our case it is liability of dealer(consignee)to pay service tax.Recently department has served a demand notice to our dealers(consignee).what step dealers should take?are they liable to pay service tax again?what should GTA do?can GTA claim for refund?reply promptly.its urgent.please give caselaw if any in support of your view.

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7 Replies

siddh (Article (Final Result waited)) (391 Points)
Replied 25 August 2007

liability to pay service tax is that person that is paying freight or liable to pay it,i.e. consignor or conginee,not transporter, then u have to pay sevice tax , gta can claim for refundbecoz he was not liable to pay it

(Guest)

I want many more details about service tax

(Guest)

I want about service tax @ 12.36%

(Guest)

As per the Purchase Order we are recovering the freight from our customer by raising separate invoices ( i.e. freight is not being included in the material bill). In the Freight Bill we mention that "SERVICE TAX WILL BE PAID BY CONSIGNEE" and similarly when Transporter raises bill to us they mention in their Consignment Note as well as in the bill "SERVICE TAX WILL BE PAID BY CONSIGNOR.CONSIGNEE". As per the Service tax rules in case of GTA service tax will have to be paid by the party who is ultimately paying freight. Following this rule we are following the above mentioned procedure. Is it correct or not?

pankaj (finance) (52 Points)
Replied 30 August 2007

dear sir, my query is that if any consignment or parcel having a value of 750 or more than in that case who is liable to pay the service tax again if the service provide is the cargo than what will be its implications.

suresh (Manager- indirect tax) (45 Points)
Replied 04 September 2007

As per service tax rules the person paying service tax shall be ' any person who pays or is liable to pay freight either himselft or through his agent for the transportation of such goods..." . As per the said Rule service tax can be paid by any person i.e. transporter etc. but in case no body had paid the service tax the liability to pay service tax shifts ont he person who is liable to pay the freight charges. In the first query, when the transporter had paid the servcie tax , the dealer need not pay service tax. In other query also the person who is liable to pay the freight has to pay the service tax if no body had paid the amount.

(Guest)

We are registered under GTA - service tax & ours is a Pvt. limited company.

In our case we are manufacturer of LAM Coke & we send coke by road transportation to our buyers & our prices are FOR destination hence we pay transportation freight & accordingly we pay service tax on GTA thereon.

But now few of our customer who are Ltd. Company had started paying service tax on GTA on the same above transaction eventhough they are not at all liable to pay freight & service tax too!! Now can we claim refund of service tax paid or they should claim refund??

And in future is it possiable that we (Consigneer) pay transportation freight but service tax thereon will be paid by them (Consignee)???

(Liability to pay service tax will be of Consignee??)

Please guide.