Service tax in case of GTA provides services to another GTA

[Ramesh Patel]

Please explain status of service tax implication in case of transport service provided by one gta to another gta. In this case four party is involved 1) GTA1 2) GTA2 3) Consignee 4) Consigner.

GTA2 (proprietory concern) arranged vehicle from GTA 1(partnership firm) and send material from consigner to consignee. The GTA2 raised bill on consignee for GTA1 freight and charges + GTA 2 charges. In this case who is liable to pay service tax whether GTA2 or consignee.

[Ganeshan Kalyani]

Hope your query is resolved.

AI Summary

Service tax liability for GTA services when one GTA hires another: which party bears tax on inter-GTA transport? Service tax arises where one GTA engages another to perform carriage and then bills the consignee for the performing GTA's freight plus its own charges; the key issue is whether liability rests on the intermediary GTA that aggregates and invoices charges or on the consignee, a determination dependent on the characterization of the supplies, contractual and invoicing relationships, and whether the intermediary acts as agent or principal.