TaxTMI 
TaxTMI 
Sir,
We are paying freight payments from our corporate office(Location -Delhi) to transporter who are rendering GTA service in Jammu. My question is simple that whether we are liable to pay service tax under reverse charge mechanism.?
Place of provision service rules, 2012 (Jammu)
07 Jan 2016 
6 Replies 
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Place of provision for GTA services: tax liability follows the location of the person liable to pay tax.
Under Rule 10 POP Rules read with Rule 2(1)(d)(B), the place of provision for GTA services is the location of the person liable to pay tax; the registered location of a body corporate receiving the service, not the location of the office making payment, determines tax liability. If the recipient is outside taxable territory, the proviso makes the GTA liable; if both provider and recipient are outside, the service is not taxable. Agent payments do not convert a third party into the person liable. (AI Summary)
Under Rule 10 POP Rules read with Rule 2(1)(d)(B), the place of provision for GTA services is the location of the person liable to pay tax; the registered location of a body corporate receiving the service, not the location of the office making payment, determines tax liability. If the recipient is outside taxable territory, the proviso makes the GTA liable; if both provider and recipient are outside, the service is not taxable. Agent payments do not convert a third party into the person liable. (AI Summary)