Service Tax on GTA

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charudatta

charudatta (Querist)
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07 January 2009 On which freight charges GTA is liable.(Inward, outward or both)?

K V Subba Rao

K V Subba Rao (Expert)
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07 January 2009 Classification of any Freight expenses as Inward or Outward is made not by GTA but Consignor and Consignee.

It is Inward for Consignee and Outward for Consignor

In specified cases (Companies etc), Consignor or Consignee, whoever pays Freight, is responsible for payment of Service Tax

In all other cases, GTA is responsible to pay Service Tax on Freight (gross amount including Hamali, Statistical Charges etc)