Person liable to service tax in case of gta services

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1. Consignor is a Partnership Firm supplying material to Consignee a P Ltd Co, on ex works basis.

2. Consignor is engaged in arranging transportation of material from GTA on behalf of consignee. Paying freight charges to transporter on behalf of consignee and works as an AGENT.

3. Consignor issuing two invoices one for material price and another as debit note for reimbursement of freight charges

My query is who is liable to pay service tax when cnsignor works as an agent of the consignee and consignor consignee both are specified person as per Service tax rule.

Replies (1)

As you are saying that the consignor is working as an pure agent as regards transportation is concerned so while issuing debit note for transportation cost he might also applying for reimbursement of ST paid . So consignee is paying ST & he should avail cenvat credit


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