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Gta

Queries 734 views 3 replies

Suppose ABC ,a firm provided goods transport services to an individual, then he transfer this services to any firm who is liable to pay service tax. how it is dealt?

Replies (3)

liability of GTA falls on the payee always.. so whoever is paying the amount , liability wil fall on him

In GTA burden to pay service tax falls on the receiver of service. (as this service is covered in reverse charge)

The person is said to be receiver of service who is liable to pay  transportation charges to GTA.

However,  liability to pay transportation charges to GTA is a matter of contract between the parties.

in case service recivere is an individual who is not running a factory registered undder factory or registered with excise gta would be liable to pay tax provided all such paynents exceds rs 10 lakhs


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