GTA Liability

[Asked by Guest]

GTA Liability for a Company Receiving Service of Transportation if Service Provider is a Private Limited Company.

[YAGAY and SUN]

GTA Liability is always on the person who is paying for the freight. It may either consignor or consignee.

[KASTURI SETHI]

I support the views of M/s.YAGAY AND SUN. This is as per Rule 2(1)(d) (B) of Service Tax Rules, 1994

(B) in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,-

(I) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(III) any co-operative society established by or under any law;

(IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(V) any body corporate established, by or under any law; or

(VI) any partnership firm whether registered or not under any law including association of persons;

any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage :

Provided that when such person is located in a non-taxable territory, the provider of such service shall be liable to pay service tax.

[Ganeshan Kalyani]

I agree with the views of both the experts. Either consigner or consignee whoever is paying freight is liable to pay service tax. If both are not liable to pay tax then transporter himself is liable to pay the tax. Further, it also depend upon the agreement or understanding between the consignor or consignee as to who is going to bear the transport cost. Thanks.

AI Summary

GTA liability: the freight payer-consignor or consignee-bears service tax; transporter liable if neither pays.
GTA liability for service tax is borne by the person who pays the freight-typically consignor or consignee-according to their agreement; specified classes of persons (factories, societies, co operatives, dealers of excisable goods, bodies corporate, partnerships) are expressly covered. If the freight payer is located in a non taxable territory, the service provider must pay service tax, and if neither consignor nor consignee is liable, the transporter is liable as the default payer.