GTA - Liability without registration

[Guest]

If a transporter is not registered in service tax as a GTA and he is not charging any service tax, whether we will be liable to pay service tax if we are consignor/consignee on presumptive basis.

[Surender Gupta]

If you are liable to pay ST in the capacity of consignor /consignee, there is no need to see that whether transporter is registered or not. Your liability is absolute and you have to discharge your liability in any case.

[Madhukar N Hiregange]

As long as you not an individual or unregistered firm or govt the liability would always be on you and not on the GTA. The consingnee /or who pay would be liable.

[Guest]

Yes. Under the provisions of the Finance Act 1994 (Chapter V)it is the service receiver (if falls under the specified category e.g. Company. Factory etc)who is liable to obtain registration and pay service tax.

AI Summary

Liability for Service Tax Falls on Consignor or Consignee, Not Transporter, Under Finance Act 1994: Key Clarification A discussion forum addresses the issue of liability for service tax when a transporter is not registered as a Goods Transport Agency (GTA) and does not charge service tax. Three contributors clarify that the responsibility to pay service tax lies with the consignor or consignee, regardless of the transporter's registration status. If the consignor or consignee falls under specified categories such as a company or factory, they are required to obtain registration and pay the service tax, as per the Finance Act 1994. The liability is absolute and independent of the transporter's registration.