GTA PAYMENT ON TRADING ACTIVITY

[SNEHAL SHAH]

Sir,

our one unit is trading unit , only material purchase & sale , that means trading activity . NOw some confusion is that we are pay transprot expense above 1500/- & some bill is above 5000/- . so is that any GTA Related liability in this case .

 Pl. suggest .

 SACHIN

AI Summary

GTA service tax liability arises when freight is paid for goods involving prescribed recipient categories or when payer bears freight.
GTA service tax liability arises where freight is paid for goods whose consignor or consignee falls within seven prescribed categories (factories, companies, statutory corporations, registered societies, cooperative societies, dealers of excisable goods registered under central excise law, and registered bodies corporate or partnership firms); the payer of freight is liable for service tax. A divergent practical interpretation notes that a trader who bears freight expense will be liable upon payment irrespective of the trader's own category status.