Transport charges Service Tax in their transportation bill

[SWAMINATHAN RAMANATHAN]

Transport Corporation of India charging service tax n their Transportation bill.

The onus of discharge of service tax liability in the case of GTA is on the consignor or consignee whosoever makes payment to the transporter. The burden of discharge of service tax liability can’t be shifted to the service provider i.e. transporter  with reference to S.No. I (A) (ii) (e) of the  Notification No. 30/2012-ST

Kindly advice whether the service tax payable by consignor or consignee directly Govt., or  pay to TCI.

 

AI Summary

Reverse charge liability on goods transport: consignor or consignee paying freight must discharge service tax under prescribed conditions.
The reverse charge places service tax liability on the consignor or consignee who pays freight rather than on the transporter, subject to verification of whether the transporter is registered as a Goods Transport Agency. Persons liable when they pay freight include factories, registered societies, cooperative societies, registered dealers of excisable goods, bodies corporate, and partnership firms (including associations of persons); applicability follows the notification governing reverse charge.