IS CUSTOM HOUSE AGENT (PVT LTD COMPANY) WHO PERFORMS JOB OF HIRING THE
TRUCKS AND SENDING TO THE EXPORTER'S WAREHOUSE FURTHER TO DOCKS AND TO
VESSEL SITE AND PAYING THE SAME TO THE TRANSPORTERS RESPECTIVELY AND
CHARGES FROM THE EXPORTERS WHETHER THE SAME AMT OR WITH SOME
PROFIT.WHETHER THE CUSTOM HOUSE AGENT HAS TO GET HIMSELF REGISTERED FOR
THE GTA SEPERATELY ALTHOUGH THE SAME IS REGISTED UNDER CUSTOM HOUSE
AGENT SERVICES.
FURTHER FOR THE PURPOSE OF THIS WHETHER THE CUSTOM HOUSE IS A GOODS
TRANSPORT AGENCY AS THE FREIGHT IS PAID ON BEHALF OF THE CLIENT.
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SERVICE TAX ON GTA
Replies (3)
Custom clearing house is not a goods transpot agency and hence he is not liable to registered under the same . it may further be clarified that in most of the cases custom clearing agent is doing ther services oin behalf of the principal and all the billing from the transporters are also in the name of Principal hence is also not liable to registered ass the receiptant.
However if the billing is in the name of agent then he has to get register as the reciptant.
However if the billing is in the name of agent then he has to get register as the reciptant.
I think that it is a GTA and is liable to Serv Tax.
Dear Friends,
In case of services of GTA, liability to pay tax is on the (in almost all cases) the person paying the freight. Notification 35/2004 phrases the liability as being on:
"person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage"
Here, the CHA does not issue a Consignment Note for transport of the goods. The note would be issued by the actual agency. Therefore the CHA himself is not GTA.
Payment made by the CHA is not on his own account. It is a payment on behalf of the client of the CHA. Therefore, the actual liability to pay tax is on the client of the CHA.
We may similarly note that CHA may even pay Customs Duty and Octroi from his pocket and seek reimbursement from the client. But these payments are on behalf of the client.
Sanjay Dwivedi
In case of services of GTA, liability to pay tax is on the (in almost all cases) the person paying the freight. Notification 35/2004 phrases the liability as being on:
"person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage"
Here, the CHA does not issue a Consignment Note for transport of the goods. The note would be issued by the actual agency. Therefore the CHA himself is not GTA.
Payment made by the CHA is not on his own account. It is a payment on behalf of the client of the CHA. Therefore, the actual liability to pay tax is on the client of the CHA.
We may similarly note that CHA may even pay Customs Duty and Octroi from his pocket and seek reimbursement from the client. But these payments are on behalf of the client.
Sanjay Dwivedi
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