Service tax on GTA

[Vijay Chitte]

We are fall under GTA services. if we have to pay advance amount to transportor is part of the value of taxable services?

[Surender Gupta]

In my opinion, if you are liable to pay service tax on GTA services received by you, you should pay service tax on advace given to good tranporter in the same manner as advance received by a service provider.

AI Summary

Advance payments in GTA services are included in taxable value, treated like advances received by service providers. Advance payments made to a goods transporter are to be treated for levy purposes in the same manner as advances received by a service provider; consequently, such advances are included in the value on which service tax liability arises for GTA services.