Service tax on GTA

[KIRAN KUMAR]

Dear Sir,

Our company transporting raw material to rented godowns and viceversa for that transporter (Lorry owner) submitting monthly bill.

Please explain the status of Service tax on GTA under reversecharge

Thanks & Regards,
Kiran Kumar

AI Summary

Service Tax Liability on GTA Services: Company Must Pay Under Reverse Charge if Consignment Note Issued, Otherwise Transporter Liable A company inquires about the service tax liability on Goods Transport Agency (GTA) services under the reverse charge mechanism. The company transports raw materials between rented godowns, and the transporter provides monthly bills without issuing consignment notes. Respondents clarify that if a consignment note is issued, the company must pay the service tax under reverse charge. Without it, the transporter is liable if their turnover exceeds 10 lakhs. The company received a notice from the service tax audit department, prompting further clarification requests. It is emphasized that the transporter should issue a consignment note, as required by law.