Gta_reimburement of fright charges_liabilty?

AmolM (Audit Assisstant) (55 Points)

13 March 2015  

X Corporation is supplying goods to Y Pvt Ltd. and availing the services of GTA for this purpose. Freight is paid by X Corp. to GTA. However, though X Corp. is liable to service tax under RCM, Y Pvt. Ltd. is paying service tax instead of X Corp. as it is "paying reimbursement" to X of freight paid by X to GTA. Please advise on who is liable to pay service tax in this scenario?