Earlier Service tax on GTA was payable by Consignor or Consignee who pays freight.After introduction of negative list, it appears that service tax will be paid by person who pays freight. Please consider below case.
A Limited is Importer of Goods. B is clearing and forwarding agent of A. B completes all custom formalities, pays all expenses related to consignment including transportation from port to factory of A and reimburse all expenses from A.
Now in above case, consignor is A limited. As per earlier provisons service tax was required to be paid by A limited as he is consignor even the freight was paid by B on behalf of A.
Now from July 2012 onwards, who is liable to pay service tax? Either A limited in the capacity of consignor or B in capacity of payer of freight to GTA?
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