Service tax payable by provider or receiver on gta

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 As per new amendment, serivce tax payable on nagative list by service receiver. my client is register under excise rule but he has no service tax no. he received GTA service & service tax paid by transporter as per transporter given bill with Freight + Service Tax. Transporter get Service tax no & he also paid service tax & filled service tax return. if tranporter collect tax on GTA & paid, is it legal after 1 july 2012 or mandatory to paid service tax by service receiver. request to kindly advice.

RENGARAJ R.K

RENGARAJ R.K (Expert)
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03 July 2012 Under the reverse charge mechanism the liability is shifted to service receiver (100%) i.e specified person. But If the service provider (GTA) is already registered under the service tax act, and collected service tax on abated value means service receiver need not pay again. Please check whether the transporters are limited companies like TCI,GATI...