Service Tax on GTA Supply.

[MANOHAR KALBURGI]

Respected Sir/Madam,

Where GTA being a proprietor rendering services to private limited company and proprietor (this proprietor is also GTA). All the transactions covered by TDS u/s 194C and same parties names are reflected in form 26AS. The services given by GTA to GTA case the fright charges are paid by the company and also consignment note is issued in the name of company.

Questions:

1. When GTA gives service to private company is this transaction is liable for RCM as per Notf'n 30/2012-service tax.

2. When GTA gives service to GTA where the freight charges is paid by the ultimate consumer(company), whether this transaction covered under notf'n 30/2012-service tax.

Thank You in Advance.

AI Summary

Service Tax Liability in Reverse Charge Mechanism for Goods Transport Agency Services Under Notification 30/2012 Discussed A discussion on the applicability of service tax under Reverse Charge Mechanism (RCM) for Goods Transport Agency (GTA) services was initiated. The query involved scenarios where a GTA (proprietor) provides services to a private company and another GTA. The main concern was whether these transactions fall under Notification 30/2012-service tax. The replies clarified that the company, as the freight payer, is liable for service tax under RCM. When a second GTA acts as an intermediary, it pays service tax on its commission if it exceeds the threshold. The body corporate is ultimately responsible for the service tax.