Service Tax under GTA will attract on freight outward

[manju nath]

Dear Experts,

We have been dispatching finished goods paying freight and accounting under freight outward but not  included in the customers invoice. who has to bear SERVICE TAX UNDER GTA.

Please clarify.

Regards and thanks

c.k.manjunath

 

 

 

[GANTI SARMA]

Service Tax to be paid by who bear the freight. In your case you are liable to pay Service Tax on GTA outward.

 

AI Summary

Service tax under GTA: person bearing the freight is liable to pay the tax on outward transport services.
Service tax under Goods Transport Agency services is payable by the person who bears the freight; where the supplier dispatches goods and pays the freight (recorded as freight outward) without billing the customer, the supplier is liable to pay the service tax on GTA.