TaxTMI 
TaxTMI 
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 ?
Liability in case of GTA
07 Apr 2008 
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Service tax liability on service recipient: payment by carrier does not relieve recipient, authorise agent or pay directly.
Liability for service tax on goods transport rests on the service recipient; a GTA's payment does not relieve that recipient of statutory liability and the revenue can still demand tax from the recipient. Recommended compliance: the recipient should pay and claim credit, or expressly authorise the GTA as its authorised agent with written authorisation and challan evidence and ensure the GTA records the payment in its returns; best practice is for the recipient to pay directly and pay the GTA only freight. (AI Summary)
Liability for service tax on goods transport rests on the service recipient; a GTA's payment does not relieve that recipient of statutory liability and the revenue can still demand tax from the recipient. Recommended compliance: the recipient should pay and claim credit, or expressly authorise the GTA as its authorised agent with written authorisation and challan evidence and ensure the GTA records the payment in its returns; best practice is for the recipient to pay directly and pay the GTA only freight. (AI Summary)