service provided by GTA

[IMMANUEL NEIHSIAL]

To

Sirs,

One assessee is providing transportation service to corporate body. The assesee is registered under Service Tax Department as GTA. Hence RCM comes into play. The recipient of the service is liable to pay Service Tax but in this instant case the corporate body/army is paying the freight.

I am of the view that GTA in this instant case is liable to pay Service Tax.

advice /suggestion is highly solicited.

with regards,

Immanuel Neihsial,

Siliguri

[KASTURI SETHI]

Service Tax on transportation of goods by road is to be paid by the person who pays (bears) the freight. Preference wise situation:-

1. Consignor (prices being FOR)

2.Consignee

If both do not pay freight, then GTA is required to deposit Service Tax.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Sethi.

[Ganeshan Kalyani]

Consignor , consignee or transporter has to service tax under RCM.

[Spudarjunan S]

Dear Sir,

Why you had mentioned Army is paying freight. If the transported goods are defence or military equipment then there is Mega exemption under notification no.25/2012. Also there are other 7 items in the list being exempted.

If the transported item is not covered in the list, then the recipient being a body corporate has to pay Service Tax under RCM.

AI Summary

Reverse charge on road goods transport: recipient liable to pay service tax unless statutory exemptions for goods apply.
Liability under the reverse charge for road goods transport falls on the person who pays the freight, with preference to consignor then consignee; if neither pays, the GTA must deposit service tax. Exemptions for defence or listed items remove the recipient's reverse charge obligation; absent exemption the recipient body corporate is liable or, failing that, the GTA must pay.