Service tax in GTA Service

[Guest]

Dear sir,

please suggest whether service tax paid on GTA service bcz freight amount are below rs 750/- in LR. transporter registered in service tax but not charge service tax in LR hence please suggest we (service receiver) will be paid service tax or not in reverse charge mechanism.

[Rajagopalan Ranganathan]

Sir,

If the entire consignment belongs to one consignee and total freight charged for their transportation is ₹ 750/- or less then no service tax is payable. You need not pay service tax on reverse charge mechanism.

[Ganeshan Kalyani]

Service tax not applicable.

[YAGAY andSUN]

In such transactions/scenarios service tax would not be payable under reverse charge mechanism.

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of the experts.

AI Summary

Service tax on GTA: no reverse charge liability where freight per consignee in LR falls below the statutory threshold. When an entire consignment belongs to one consignee and the total freight charged to that consignee in the LR does not exceed the applicable threshold, service tax is not payable on the GTA service and the service recipient need not discharge tax under the reverse charge mechanism.