17 January 2013
Mr. A purchases goods from Mr. C. In order to get delivery of the goods, Mr. A hires Mr. B (Goods Transport Agency). Transport charges are thus incurred and paid by Mr. A.
Mr A – the consignee, Mr. C – the consignor and Mr. B – GTA, all are proprietary business firms.
Who is liable to pay service tax in this case?
What if the GTA issues consignment note saying that the service tax is payable by the consignee?