Applicability

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MANAN PARIKH (Querist)
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08 March 2011 Hello,
One person is carrying out contracting business. For the f.y.2006-07 and 2007-08 he was also doing business as contractor in individual capacity as a proprietor. Now,In service tax audit procedure, whether he can be liable to pay service tax considering him as a GTA though the business was in proprietory concern??

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CA Unnikrishnan Nair N

CA Unnikrishnan Nair N (Expert)
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08 March 2011 For determining GTA liability, status of both, consignor and consignee, is relevant. If consignor is company, firm or factory, then also the payer of freight is liable even though the payer is an individual.