Gta services

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 one of my client is liable to pay service tax under GTA service, but in his sale he charge his customer for transportation charges also. will he is liable to pay tax on that also if yes plz specify??

Gopalkrishna Hegde ,CA,DISA

Gopalkrishna Hegde ,CA,DISA (Expert)
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03 July 2013 Yes In case of service tax under reverse charge mechanism the service receiver has to pay service tax under GTA

But that the amount collected from customer is not subject to service tax as he is not providing any service

However the client has to be cautioned as regards vat is concerned. as there are disputes with sales tax and central excise department depending on the state to include freight charges with the taxable turnover or transaction value