TaxTMI 
TaxTMI 
Service Tax on GTA on RCM
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....ervice Tax on GTA on RCM<br> Query (Issue) Started By: - TEJASWINI BELOSE Dated:- 24-2-2015 Last Reply Date:- 25-2-2015 Service Tax<br>Got 1 Reply<br>Service Tax<br>Dear Sir, My client(A) is hiring GTA (B) and providing services to its customers(C). But they(A) are claiming it as transport charges say ₹ 10,000 paid in profit and loss A/c. Also they are recovering the same including their co....
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....mmission of ₹ 15000 from its customers(C) and showing it under Sales in profit and Loss A/c and earning commission of ₹ 5000/- in the transaction. C is paying Service tax under RCM on ₹ 15000/-.Whether in this case B is also liable to pay service tax on RCM basis on ₹ 10,000/-??? Will this not lead to double taxation on part of B if C is paying service tax on entire ₹....
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.... 15000/-???? As we hire services other GTAs to whom we as agents pay transportation charges and thereafter seek reimbursement from the respective clients for whom the transportation was arranged. We first books the transportation in our books on payment to the other GTA and thereafter charge the client for reimbursemet. Just because we booked the transportation expenses in our books, will it amou....
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....nt to us being considered as the service receiver (rather than the client)and consequently be liable to pay servic tax under the reverse charge mechanism?? Reply By PAWAN KUMAR: The Reply: Dear Belose Ji, B is not liable for service tax at all. As per my view, as C has discharged the service tax liability because in case of freight either consignee or the consignor who pays the freight to GTA i....
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....s liable for service tax. The actually liability of which who paid the freight to GTA which is A.<br> Discussion Forum - Knowledge Sharing ....