SERVICE TAX ON CARGO SERVICE

[Rajeev Khulbe]

Good evening to all my great experts,

I am again hare to get your valuable answer. As per service tax rule, in case of G.T.A service tax is payable by service receiver. but sir in some case in G.T.A some service provider like TCI XPX OMAXE LOGISTICS GATI LTD. ETC. charge service tax in their bill Sir can you tell me the reason why they charge service tax in their bill under gta

thanks for your valuable reply

AI Summary

Service tax liability under GTA rules: consignor first, then consignee, and ultimately the transporter; cargo handlers may charge tax.
Service tax liability for road transportation under GTA rules is allocated in priority: consignor, then consignee, and if neither pays, the GTA. When the person liable to pay freight falls in specified categories or is located outside the taxable territory, special liability rules apply, and voluntary payment by GTA may invite recovery though double payment is contestable. Distinct cargo handling activities (packing, loading, unloading, delivery) may attract service tax by the carrier as a cargo handling service, requiring factual scrutiny of invoices and agreements to determine the correct levy.