Liability in case of GTA

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Service Tax paid by GTA instead of the person liable to pay service tax i.e. Pvt.Ltd.Company. What is the consequences ? What is the remedy ?

AI Summary

Who Pays Service Tax: Goods Transport Agency or the Company? Insights on Section 68(2) Finance Act. A discussion on a forum addresses the issue of service tax liability when paid by a Goods Transport Agency (GTA) instead of the liable private limited company. The first response suggests that the company should also pay the tax and claim credit, noting a circular advising against GTA payment. The second response clarifies that, under Section 68(2) of the Finance Act, the service recipient, not the GTA, is liable for the tax. It advises the company to authorize the GTA as its agent for tax payment or to directly pay the tax to avoid complications.