Gta

415 views 9 replies

sagar

student

26 Points Joined September 2015

there is a builder purchased cement from dealer and paying transportation expenses to the dealer and not transporter. service tax liability of gta is of builder or cement dealer?

Replies (9)

Prabhat Kumar

Advocate & Consultant

1912 Points Joined July 2009

Builder under RCM as he is the person liable to pay freight.

Vikas

1135 Points Joined January 2010

agreed with the above

In case of Goods Transport Agency, reverse charge mechanism is applicable and hence service receiver is liable to pay service tax. Therefore dealer is liable to pay the service tax. Builder is paying transportation expenses as a reimbursement and not hired the service on its own.

Trilochan mohapatra

----

249 Points Joined September 2013

Builder or cement dealer ...transportation Invoice Pe jiska naam ho...he is liable to pay service tax..i think here the bill is raised against cement dealer...so he will be liable.. Correct if i am wrong.. Thanks

Gaurav Laul

Sr Manager Finance

21 Points Joined March 2012

Only condition is gta bill should be raised by transporter in favour of the receiver. Here dealer is not a goods transporter hence rcm provisions not applicable on builder but on dealer

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

First whether the transportation is done by the goods transport agency or by goods tranporter ( not agent). Under negative list transportation is not liable to ST other than GTA. ( Booking agent issuing consignment note) If GTA then: the person liable to pay the freight in this case the dealer would be liable. Builder not liable even if he is the specified person.

Only if dealer is paying the freight on behalf of the builder then the builder maybe liable.

See article on who is a GTA and what is the differecne between GTO ( not liable) and GTA( Liable)

sagar

student

26 Points Joined September 2015

Thank u all for your valuble replies. here in my case, e.g saurashtra cement is dealer.he is sending bill for cement and transport on his own latterpade and transport bill is bearing transportre details. Transporter is not billing directly to builder. So, i think builder is not lible for services tax as per our discussion.