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

Reverse charge on road freight: the freight payer bears service tax liability under RCM.
Under Notification No.30/2012 the person who pays or is liable to pay freight for road transportation is treated as the service recipient and must pay service tax under reverse charge; where a body corporate pays freight it is liable. Priority for liability applied as consignor, then consignee, then GTA. Where a second GTA acts as intermediary, the ultimate payer (consignee/body corporate) remains the de facto service recipient liable under RCM, while the intermediary is taxable on its commission or profit element.