Freight payment to transport agency like tci,xps,srmt,navata

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2011 Sir,

Our's is a limited company of power generation. our suppliers are dispatching materials through GTA's like Transport Corporation of India (TCI), XPS Cargo and Associated Road Carriers Limited (ARC), as per the Service Tax Rules, the liability of service tax payment rested with the company, but the said transport agencies are claiming service tax in their bills.In this connection, please advise me in this case who is the bearer of service tax payment to government.

Pankaj Agarwal

Pankaj Agarwal (Expert)
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21 October 2011 In this case as the service provider i.e. TCI & XPS cargo is already collecting service tax amount in their service invoices the liability to discharge the service tax to the government is cast on the GTA operator only and the conmpany is not required to pay service tax under reverse charge.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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21 October 2011 Yes service tax liability is in the hands of Transport Agencies as they are charging service tax in their bill. The reverse ST rule will not applicable in this case.

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