Gta reverse charges

This query is : Resolved

varun (Querist)
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18 December 2014 We are an Export Firm, We have a system of selling directly through the factory of supplier i.e. Goods are sent directly from the factory of supplier to the port. Now freight on transportation is paid by CHA and further CHA claims the freight amount from us as reimbursement OR MAY BE ADD SOME PROFIT IN THIS . Who is liable to bear service tax on GTA services as per reverse charge mechanism

CA Robin Betala

CA Robin Betala (Expert)
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18 December 2014 In my opinion under RCM service tax is payable by whoever pay freight in your CHA is act as an agent for you and in the case you are pay freight therefore you are liable to service tax.
Moreover if you are exporting the good then you can claim refund of above service tax paid by you.