Goods transport agency

[Asked by Guest]

Dear all,

Myself a GTA having own 05 trucks. Mr X a company registered requires 10 truck for supply of his goods by road.

For 10 trucks i used 05 of mine and balance 05 hired from different transport and issued invoice and CN for all 10 trucks.to Mr X. and Mr X paid for the 10 trucks

The different transporter charged me for their supply of 05 trucks and i paid them the transport charges.

My Question is.

1) Who is liable to pay service tax in case of GTA

2) Should i be liable to pay service tax on payment made of transportation charges to other transporter.

[Madhukar N Hiregange]

In this case as you are issuing a CN and maybe a GTA Mr. X the company has to pay ST on 25% of your bill.

So i need not have to pay ST even if i paid for other transporter.

pls provide me strong evidence if any to defend myself

[PAWAN KUMAR]

Dear Sir,

As per provision under Service Tax Law, service tax liable on the person who actually pays freight to GTA. As the company Mr.X is paying freight to you, Mr. X is liable for payment of service tax as per my view.

Thanks all

The same i am referring to the Service Tax auditors but they says that you also paid transportation charges so on RCM service tax is payable.

Kindly provide any case regarding this matter so that i can defend myself.

[YAGAY and SUN]

Dear Sujit,

Please refer point No. 22 (b) of the 25/2012-ST in this regard. such services would be exempted.

22. Services by way of giving on hire -

1. to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or
2. to a goods transport agency, a means of transportation of goods;

Regards

 

Team YAGAY and SUN

AI Summary

Service tax liability on goods transport agency: payer of freight bears tax; exemption may cover hired vehicles.
The core operative point is that service tax is liable on the person who actually pays freight to the GTA-the shipper who paid the GTA-so the GTA need not pay service tax on amounts it paid to other transporters, while the reverse charge exposure claimed by auditors is addressed by an exemption (point 22(b) of Notification 25/2012 ST) for services of giving on hire to a goods transport agency of means of transportation of goods.