What agent means in liability to pay under GTA

[ANIL MANTRI]

The person liable to pay service tax under GTA is 'any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage'

What does liable to pay freight either himself or through his agent means? Specifically what does agent mean? Can you elaborate with the example?

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

In respect of GTA services the recipient is liable to pay service tax. The freight charges is liable for service tax. The goods may either be received by the recipient himself or he may authorize any person as agent to receive the good on his behalf. In both occasions the service tax is laible to be paid.

AI Summary

Liability to pay service tax applies where recipient pays or is liable to pay freight, including when via an agent. Under GTA services the recipient who pays or is liable to pay freight for road transport of goods in a goods carriage is liable to pay service tax; if the recipient authorizes an agent to receive goods on his behalf, the recipient remains liable to pay the service tax on the freight.