Service Tax on GTA

[Asked by Guest]

Sir/Madam..

I need a clarification regarding Service tax on GTA , i am working in a sugar factory i received a freight bill towards materials sent/received for/after reconditioning work from xxxx company. In this connection, as per order terms freight is our scope the xxxx company has claimed the service bill & freight bill seperately. Now my question is whether i have to pay GTA for the freight bill or not.

[PAWAN KUMAR]

Dear Sir,

As per my view, the person who is paying freight to transporter is liable for service tax and the XXX Company is liable for service tax.

[Tarun Agarwalla]

yes sir the person who pays fright will required to pay service tax subject to the provisions of Rule 2(d) of Service tax Rule

[Manoj Agarwal]

Dear Sir,

In my view, if the other company has engaged the GTA and paid freight on principal to principal basis and not as an agent on your behalf, then service tax thereon is payable by other company. You are not liable to pay service tax under RCM on reimbursement of freight claimed by other company. The real issue is Whether the other company is liable to service tax on reimbursement of freight as per amendment in section 67?

AI Summary

Service tax liability on GTA: payer may be liable unless transporter engaged and paid by the supplier.
Service tax liability for freight under a Goods Transport Agency arrangement depends on which party engaged and paid the transporter; a payer who pays the transporter as principal is generally liable to discharge service tax, whereas reimbursement to a supplier who engaged the transporter does not attract reverse charge, subject to Service Tax Rules and amendments to valuation provisions affecting reimbursement.