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GTA on petrol carriage (Opinion needed)

Bhushan (Article) (91 Points)

31 January 2010

If i have a contract with a pump owner to provide petrol,oil & diesel at my factory premise. He Owns a tanker in a differnt name (Ie not by the name of his petrol pump but in the name of a separate Firm doing business of getting his petrol from the companies depot) If he sends me petrol in that tanker, with a separate bill of transportation. Am i liable to pay GTA on such transport?

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Shiva Kumar (CA Final) (208 Points)
Replied 31 January 2010

If you are paying the frieght, the n answer is YES.

But, the Petrol Bunk owner pays it, then you need not pay the Service Tax.

Concept

The Person who pays the Freight to the Transporter is liable to pay service tax

Shiva

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 01 February 2010

In my view there is a clear distinction between GTO ( owner/ Operator) and GTA ( agent- Booking).

In your case the GTO is paid which is not liable under ST at all. Recently the Tribunal at Bangalore has upheld this view - Kanakadurga Oil Industries case. See article on GTA for more understanding.

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