GTA SERVICES

[SARVESH BALDI]

SIR

WE ARE A MANUFACTURING UNIT UNDER WHICH ACTUAL SALES &  PURCHASE ARE IN OUR NAME BUT ALL PAYMNT TO SUUPLIERS & COLLECTION OF DEBTORS IS DONE BY BRAND OWNER.WE ONLY GET OUR MANUFACTURING CHARGES.

SIR NOW IN CASE OF GTA SERVICES ALL BILLS/GR COME IN OUR NAME ALONGWITH ALIAS  BRAND OWNER'S NAME. IN CASE WHERE WE ARE LIABLE TO PAY FREIGHT WE PAY SERVICE TAX & GET IT REIMBURSED FROM BRAND OWNER. BUT THERE ARE TIMES WHEN BRAND OWNER HIMSELF PAYS TO GTA DIRECTLY.SIR PLZ GUIDE US WHETHER WE ARE LIABLE TO PAY SERVICE TAX ON SUCH PYMTBY BRAND OWNER DIRECTLY TO GTA THOUGH GR IS IN OUR NAME BUT PYMT MADE BY BRAND OWNER.

PLZ GUIDE

AI Summary

Manufacturing Unit Queries Service Tax Liability on GTA Services When Brand Owner Pays Freight Under Reverse Charge Mechanism A manufacturing unit inquires about their liability for service tax on Goods Transport Agency (GTA) services when payments are made by the brand owner. The unit handles sales and purchases, but the brand owner manages payments and collections. The query seeks clarity on service tax obligations when the brand owner pays the GTA directly, even though the goods receipt is in the unit's name. A response indicates that under the Reverse Charge Mechanism, the entity paying the freight is liable for the service tax. It is advised to maintain documentation for audit purposes. Further clarification is requested regarding any official notification to inform the brand owner.