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

Responsibility for Service Tax on GTA Outward: Party Bearing Freight Cost Liable for Payment A user inquired about the responsibility for paying Service Tax under Goods Transport Agency (GTA) for freight outward, stating that they dispatch finished goods and account for freight outward without including it in customer invoices. An expert responded, clarifying that the party bearing the freight cost is responsible for paying the Service Tax. In this case, since the user bears the freight cost, they are liable to pay the Service Tax on GTA outward.