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Service tax on bhutan consignments

Manish (Accountant) (250 Points)

02 August 2014

An office memorandum is issued by TRU of Ministry of Finance regarding non applicability of Service Tax on services provided in Bhutan (Outside India). Copy of the same is enclosed.

Goods Transport Agency Loaded the goods from any place of india and deliver the same in Bhutan. My question is "Whether Service Tax is applicable under GTA Service on such type of consignments which are booked from India and deliver in Bhutan or Booked from Bhutan and Deliver in India?"

Thanks in Advance...

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ANUP GUPTA (KEEP SMILING fcaanupgupta@gmail.com) (303 Points)
Replied 03 August 2014

Dear Manish G,

under GTA Service, we have to see that to whom we are providing GTA service. For eg. let's say. Consignor is in INDIA and consignee is in Bhutan.

Now if freight is to be paid by the consignor, even if good are to be delivered in bhutan GTA need to charge service tax. On the other hand, if freight is to be paid by the Consignee then GTA need not to charge any service tax.

For Service receiving from Bhutan it would be a import of service and service receiver is liable to pay service tax