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Goods transport by road

DILIP MEHARIA (MANAGER) (39 Points)

29 October 2011

Dear Professionals,

Need your help regarding GTA service, I am registered under GTA as a receipient of service and paying service tax as per provision of the act, Some registered transporter (here service provider under GTA) also working with me who are charging service tax on their Bill and I paid full amount to them (Freight+Service tax). Though I am also registered under GTA service shall I pay the amount of Tax to the registered transporter or not.

I am registered in the comany name whether service tax liability is myself or Transporter, As per effect of notification No. 35/2004 service tax liability is to be paid by consigner or consignee not to transporter, Pls suggest.

I already paid the service tax amount to transporter against their bill shall I have to pay again tax for the same payment as per above notification

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 29 October 2011

Originally posted by : DILIP MEHARIA
	Dear Professionals, Need your help regarding GTA service, I am registered under GTA as a receipient of service and paying service tax as per provision of the act, Some registered transporter (here service provider under GTA) also working with me who are charging service tax on their Bill and I paid full amount to them (Freight+Service tax). Though I am also registered under GTA service shall I pay the amount of Tax to the registered transporter or not. I am registered in the comany name whether service tax liability is myself or Transporter, As per effect of notification No. 35/2004 service tax liability is to be paid by consigner or consignee not to transporter, Pls suggest. I already paid the service tax amount to transporter against their bill shall I have to pay again tax for the same payment as per above notification

when transporter has collected service tax from you, then you have to exclude those bills on which service tax is collected by the transporter ( obtain their service tax regn number), and pay the service tax only on the amount on which service tax liability is not discharged by the transporter.

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Sk. Abdul Aziz (CA - Final) (811 Points)
Replied 30 October 2011

Basically Service Tax is payable either by Service Provider or Service Receiver. In case of GTA, Service Tax is payable by Service Receiver. However, if the Service is provided to individual or HUF, it is the responsibility of Service Provider i.e Transport Agency to pay Service Tax.In your case, if you are not individual or HUF, then it is your responsibility to pay Service tax to the Government.

Notification no. 32/2004-Service Tax, dated 3rd December, 2004 [now Notification no.1/2006-S.T., dated 1.3.2006] exempts service tax on 75% of the gross amount charged in respect of taxable service provided by a goods transport agency to a customer, provided that credit of duty paid on inputs or capital goods [now input services also] used for providing such taxable service is not taken and benefit of Notification No. 12/2003-service tax, dated 20th June, 2003 is not availed of by the goods transport agency.

In case of GTA bills, charging Service tax on the full amount of the bill without 75% abatement is incorrect.If the transporter does this, you can modify the invoice to this extent.If you have already paid the service tax to the GTA and the GTA has in turn remitted the tax to the Government Account, there is no further requirement to make re-payment of tax on your part.However you should be in possession of a certificate/declaration to this effect from the GTA.

Hope that answers your query.