GTA Services - Who is liable to pay Tax

[Dipak Rajpara]

Hello,

 

Please help me understand the Provisions of GTA Services. How to decide the Person Liable to pay Services - Transporter, Consignee OR Consignor?

Thanks a lot .

Dipak

[YAGAY andSUN]

Whoever pays freight amount would be liable to pay the service tax on the GTA services.

[Yogesh Jain]

Hi Dipak,

If service provider is a transporter registered under GTA then you have to pay service tax on the services availed by you and further you can not take cenvat credit rbut if he is registered under courier act then service provide can collect the service tax from you and will get it deposit to excise deptt on behalf of you, in this case have right to get the cenvat credit of amount paid by you against service tax.

 

Yogesh

 

[NEERAJ KUMAR, RANCHI]

Dear Dipak,

In GTA services if the service recipient is one of the entities listed in the Notification 35/2004-ST in that case service receipients is liable to pay service tax, otherwise Goods Transport Agency issuing consignment note is liable to pay service tax. Among consignor or consignee if they fall in the list as mentionmed in the above said Notification who ever pays the bill will be liable to pay service tax.

 

[rajkumar shukla]

First ascertain whether consignor or consignee(any one)is one out of 7 categories mentioned in Rule2(1)(V) of service tax rule. If anyone is falling under 7 categories then(out of the two) who pays the freight is liable for payment of service tax.

AI Summary

Liability for GTA service tax: notified recipients or the freight-payer must pay; transporter status alters credit rights. Liability for service tax on GTA services depends on whether the service recipient is within notified classes; if so, the recipient is liable, otherwise the GTA issuing the consignment note is liable. Between consignor and consignee, the party who pays the freight is liable, and the transporter's registration status (GTA versus courier) affects who collects the tax and whether the payer can claim cenvat credit.