Goods transport agency

[SUJIT S]

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.

AI Summary

GTA Owner Seeks Clarity on Service Tax Liability After Hiring Additional Trucks; Mr. X to Pay on 25% of Bill A goods transport agency (GTA) owner with five trucks sought advice on service tax liability after hiring five additional trucks for a client, Mr. X. The owner issued invoices for all ten trucks, with Mr. X paying the freight charges. The query was whether the GTA owner or Mr. X is liable for service tax, especially on payments to other transporters. Responses indicated Mr. X should pay service tax on 25% of the bill, as he paid the freight. However, the owner was advised to consult service tax provisions and exemptions for further clarification.