Service Tax on GTA

This query is : Resolved

CA Honnur Swamy K (Querist)
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16 November 2009 Transporter has charged service tax on 25%in the bill after claiming 75% abatement and the consignee paid the bill including service tax and taken the credit is there any GTA provision wil applicable inhis case

Arbind Aggarwal

Arbind Aggarwal (Expert)
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16 November 2009 If you are a factory/firm etc. then liability to pay service tax is on the consignee or consignor. The transporter should not charge or pay tax.

Sunil

Sunil (Expert)
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16 November 2009 Agreed. If either of the consignee or the consignor is a specified person, then the person paying the transportation charge is liable to service tax. If the consignor is a company (specified person) and the consignee is a proprietorship concern not having a factory (unspecified person), whoever is responsible for payment of the freight will be liable even if the person is not specified. GTA is liable only when both parties are not specified. However, to claim abatement better get the transporter to stamp and sign a declaration on his Bill that he has not claimed any input service or Cenvat on that bill.

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