Service Tax Payment on GTA

[Asked by Guest]

Dear Sir,

when Service Tax is payable under Goods Transport Agency (GTA) Service.

1- at the time of making payment to Transporter    OR

2- at the time of provision of invoice.

Please guide as per point of taxation.

Regards,

Rahul Patel

[Madhukar N Hiregange]

Normally GTA payment by the service provider would be as per the POTR - earliest of invoicing, provding or service or receipt of payment.

However in most cases GTA liability is paid by the receiver where the POTR is the date of payment to the GTA. 

AI Summary

Point of taxation: GTA service tax arises at earliest of invoicing, service provision, or receipt; receiver often liable.
Point of taxation for GTA services is the earliest of invoicing, provision of service, or receipt of payment, which determines when service tax is payable. In practice, liability is often borne by the service recipient where the point of taxation coincides with the date of payment to the transporter.