GTA

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2011 what is GTA, and kindly some one state me that if a transport Co. raised a bill of Rs.3000/- and in this amount Transport Co. did not add Service tax. then how much my liability to pay the tax, if possible then kindly state in brief

CA CS CMA Srinivasan N

CA CS CMA Srinivasan N (Expert)
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12 May 2011 Hello,

The GTA service refers to Goods Transport Agency Service u/s 65(105)(zzp). The Service tax on GTA operates on reverse charge basis where either the consignor or consignee has to pay the service tax on behalf of transporter. The service tax is payable on 25% of bill value after abatement.
In the example given in query service tax liability would be 10.3% of Rs.750 (25% of 3000) which is equal to 77.25 payable by consignor or consignee. To know whether consignor or consignee to pay, refer the LR copy of the transporter where it is mandatory to indicate the person who is liable for service tax.
Hope this clarifies.

Rgds
Srinivasan