Applicability of reverse charge in service tax to gta

Bandi Purushotham Rao (Credit Manager) (61 Points)

27 November 2012  

Hi all

There is Goods transport agency which is receiving orders (from consignors) to transport goods from one place to other. In turn in assigns the same to the local transports. As the consignor is the service receiver as per the reverse charge the consignor is responsible to pay service tax. My doubt is the GTA is also receiving service from the local transporters and there fore is GTA is liable to pay service tax? Please reply as early as possible...

Thanks and regards

Purushotham Rao Bandi