09 July 2009
if the value is charged for this sevice then it will be paid by X but it can be shifted to the consignee. if nothing is recovered for it, then no service tax is payable.
10 July 2009
Query: 'X' is a manufacturer. 'X' clears his goods from his own truck/tempo/vehical and collects the freight from the buyer.
Your answer is in the query itself, "X" is a manufacturer as well Service Provider of Transport for which he is charging freight from the buyer.
Service Tax (GTA Catagory) is always payable by the person who pays the freight. In your case as buyer is paying Freight, Buyer is liable for Service Tax Payment
14 July 2009
In my view since the manufacturer is not a GTA ( he is not an agent of anybody) there is no liability under GTA at all on anybody. The GTA liability is on the booking agents who issue a consignment note.
CAclubindia
