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.

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.