Service tax payment for gta services

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Find attached chapter 5 of service tax. GO to page 5.9 & read points which merit consideration.

my question is :

if you read point 2 together with point 5 the interpretation is :

even if GTA pays the service tax on such GTA service provided by him, then also consignor or consignee is liable to pay service tax. But that service tax would be on what amt? For eg. In  my company one GTA has charged 1000 as transportation service & 130 as service tax . So net amt charged is  1130/-. So shall I being the service recipient pay service tax on 1130 or 1000?

Secondly point 5th says that where consignor or consignee who is responsible are not specified liability reverts to GTA & then GTA should pay the service tax. I dont understand the meaning of "consignor or consignee who is responsible are not specified".Does that mean that GTA has not specified in consignment note/ tax invoice who should pay the tax ie consignor or consignee. Or does that mean that in the invoice raised by GTA, names of consignor or consignee are not specified. The example I mentioned above will be covered  under this matter or not.


Attached File : 391593 923522 21773vol2sm finalnew idtl sbtvt cp5.pdf downloaded: 227 times
Replies (1)

Referring your example, your company needs to pay only Rs.1000 that is exclusive of service tax, since the liability to pay tax, in case of GTA, is on the consignor or consignee, and therefore in this case your company is consignee, your company needs to pay service tax amount of Rs. 103 @ 10.3%/130 to the government.

With respect to your second query, where the consignor or consignee is not mentioned means the same as you understand i.e. where the consignment note is issued without any name in the consignment note which is almost a very vague situation wherein the note is issued without any name. No transporter wants to bear the liability to pay service tax.

And w.r.t. point 4 of the said page, it is totally wrong as the liability to pay service tax is on the person who pays the amount of transportation to the transporter.


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