Gta related doubt (need expert opinion)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2012 we are a manufacturing private company and we pay freight from years..but never got registered ourselves in service tax w.r.t. GTA service. since GTA always had reversed charge since begining. we were always liable to pay service tax. but we dint pay. our GTA used to pay.

if we register ourselves now...is their any possibility that service tax department will take action against us. as we were not registered previously but paying freight regularly????? they may call our documents like final statements which shows payment of freight???

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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24 September 2012 Registration should be done now inorder to avoid future problems. Since the Service Receipient is liable to pay in respects of services provided by GTA in respect of Transportation of Goods by Road so how can you think of avoiding it at a future date also.

There is a possibility that ST Deptt by ask for previous yrs data/ docs but its better to rectify the mistake done earlier now rather than paying Penalty along with Interest on the Previous Years and accumalting the amount as huge sum

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2012 we do want to get registered but we fear for past records.

however our GTA collected tax from us previously...

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U S Sharma

U S Sharma (Expert)
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25 September 2012 as you told in your 1st post that the Service tax was always paid by GTA. so if the tax was paid by GTA, then you were not liable to pay it again. just procure a certificate from GTA(s) that they have paid the service tax under their service tax regn no ...............

you are liable to pay ST on GTA only in case where GTA is not charging the service tax.

big transporters, like TCI/ETO etc always charge service tax and here the client has no liability to pay service tax again.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 October 2012 I think you are not aware with the provisions of service tax. You are paying Transportation charges to various transporters and as per you, you are liable to pay service tax. I also agree with this view but if the transporter is not charging service tax separately this means it is included in the freight and they are paying it. Hence, you are not liable for registration.

No need fear with any department as indirectly you are paying the service tax as it is included in the gross transportation charges paid by you.

If service tax is applicable to you for other products then you have to get your self registered under service tax and you can also avail the set off.

Rupesh Jain

Rupesh Jain (Expert)
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21 May 2014
you registered with service tax and make service tax payment. all above experts give good answer.
more over above you do one more thing if transporter is your regular vendor then you can collect from them copy of their service tax return and challan of payment of tax. it useful for you in future if you face any query from deptt. for non payment of tax.