GTA ON OUTWARD FREIGHT

[sachin borkar]

Dear Sir ,

              if transportation cost in include in your part cost , we are paying excise duty on this. means part cost 1.00+ transport cost 0.5=1.5 , duty paying on value of 1.5 , it's means GTA already paid in excise duty.

 is there any liability to pay GTA on outward freight even excise duty paid?

waiting for valuable reply

[Rahul Sonawane]

Dear Sachin,

GTA is applicable on Transport Services, where the liability to pay the service tax is upon the consignee or Consignor with whom the Transporter is having the Contract.

Hence GTA is applicable.

[PAWAN KUMAR]

As per my view, in case of freight, primary liability is to pay service tax. However if you are paying excise duty on freight, there is no issue. Either Excise duty or service tax can be paid as rate of both the levies are same.

[sachin borkar]

we are not paying separatly tax on freight.freight charges are include in our part cost , so when we sale a part at time we debit excise duty. so our excise auditor asking seperatly service tax on GTA.

is there any rule in excise when GTA cost is include in part cost then no need to pay GTA ?

waiting for valuable reply

 

AI Summary

GTA liability on outward freight applies even when freight is embedded in part value; tax treatment depends on levy overlap. Whether Goods Transport Agency (GTA) service tax applies where outward freight is included in the part's value and excise duty is charged; one view affirms GTA remains chargeable because liability lies with the consignor/consignee contracting with the transporter, while another views excise duty on freight as addressing the tax liability due to similar levy rates, leaving unresolved whether excise rules permit non-separate accounting to negate GTA liability.