Dear Sir/Madam,
We are proprietary firm and have received services from GTA and paid freight respectively. Since we are not covered in the above ‘specified category’, GTA should be liable pay service tax in this case. Who should be liable to pay service tax if GTA is unregistered?
Please provide me your valuable opinion this.
Proprietary Firm Not Liable for Service Tax on GTA Services Under RCM Per Notification 30/2012; Verify Consignor Status. /2012 A proprietary firm inquired about service tax liability for services received from a Goods Transport Agency (GTA). The consensus among respondents was that the firm is not liable to pay service tax under the reverse charge mechanism (RCM) as it does not fall under the specified categories outlined in Notification 30/2012. If the GTA is unregistered due to small scale exemption, the consignor or consignee may be liable instead. If both are unorganized, the GTA pays under the Forward Charge Mechanism. The firm should verify the consignor's status for record-keeping to avoid future complications. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
