Who is liable to pay service tax in goods transport agency

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2013 Hi,friends
Our client is Logistics.The main objective is providing service to customers who generally import goods from abroad.The client will see the formalities to be completed at Port and deliver goods at customer place. For this he will hire transport for transferring goods from port to customer place.Here transporter is issuing invoice with out service tax component to the client i.e logistics, and our client is also not paying service tax to him on transport charges.And he is also not charging service tax on transport to his customers.In this case who is liable to pay service tax and at what rate ? is there any abatement..? Please post u r phone number for further clarifications

Arun Kumar Singh

Arun Kumar Singh (Expert)
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03 July 2013 Service provider turnover is more than 10 lakhs then they should registered with service tax and pay the duty. But as per reverse charge system under notification no. 30/2012-ST recipient will liable to pay service tax on GTA services. The abatement is 75% of the assessable value.

TKKKKKK

TKKKKKK (Expert)
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03 July 2013 customer is liable to pay service tax.If your client is working as pure agent and don't charge anything above the transportation charge.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 Hi Khatri,
Our Client is not a pure agent....he adds some profit also...above the transport charges.....

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2013 Hi Arun Kumar..
My doubt is..our client comes under receiver or mediator ?
Here three parties are there:

1.Service provider - Transporter

2.My Client ( Logistics ) - Who hires / mediator etc..

3. Actual receiver of goods - customer of My client i.e Logistics.

Here, who is receiver is my point ? and if service provider is nt having registration is there any impact on my client...he is partnership firm...

Arun Kumar Singh

Arun Kumar Singh (Expert)
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03 July 2013 If mediator is paying the service tax on GTA services. They are liable to pay service tax under reverse charge system. Service provider is under ssi exemption then no need to pay service tax and actual service recipient is not liable to pay service tax if they are not paying freight charges.