Abhinav Aggarwal (STUDENT/ARTICLE ASSISTANT) 14 March 2013
Can anyone tell service tax provision in case, when one Goods Transport Agancy is takin/giving sevices to Other Goods Transport Agancy, in all cases like, road, rail, air, etc. As per the new provisions of ST.
Please tell me the method of calculation & who will pay the same.
Asif Khan (Taxation executive) 14 March 2013
As per my view
Generally, service provider is responsible for payment of Service Tax.However, in case of Goods Transport Agency service the liability of paying Service Tax may fall on service receiver or service provider depending on the status of the receiver, as per Service Tax Rules 1994, taxable service is provided by a goods transport agency to specified category of persons then service tax is liable to be paid by the consigner or consignee. Reverse Charge is Applicable here.
In your case the GTA is acting as a Consigner or Consignee therefor the GTA recieving the service will have to pay the service tax under Reverse Charge.