heyyyy!!!!!!! opinion needed plzzzzz...urgent :( n plzzz dnt just view reply tooooooo.. ;)

C.Balaji (Learner) (1867 Points)
Replied 28 January 2010

Dear Rashmi,

Please follow this link it may be useful for you....

/articles/goods-transport-agency-and-service-tax-3114.asp

1 Like

Amir (Learner) (4016 Points)
Replied 28 January 2010

Dear Rashmi,

In First case - Service Tax is payable by the organisation who makes payment to supplier of goods

(beacuse it is written either himself or through his agent)

In the second case - Service tax is payable by the supplier of the goods..(since he is actually making payment & getting it reimbursed from the organisation as opposed to above case where he was getting money from the organization & then makes payment to transporter thus acting as an agent)

1 Like

rashmi (article) (59 Points)
Replied 28 January 2010

Helllooo Mr. Balaji...we went thru ur link but it doesnt solve our querry.....Can u plzzz tell us whether in this case the org. is liable to collect n pay service tax coz it is indirectly paying freight to the GTA thru the supplier......thanksss....

Bhushan (Article) (91 Points)
Replied 28 January 2010

girl...i ws exactly gonna ask the same question...i ws just composing it whn i saw ur post on the forum...im too searching the same thing . Anyways wht i feel is that if im availing the service of GTA ,n if im liable to pay freight then its my liability to pay the service tax. BUT If the other party is paying the freight on our behalf then its his liability. now if he is sending us the bill then check "Consignment Note" , in the note it is very clearly mentioned wether it is "To pay" or "Paid" if it is "paid" and it is being re imbursed then there is no levy of GTA service tax.

Thats what i feel.

Bhushan (Article) (91 Points)
Replied 28 January 2010

I have one query relating to GTA if u can contribute ,kindly do so, I am the consignee and the consignor is sending me the bill of material and also a bill of transporter (which i have to pay to the transporter directly),but the bill of the transport does nt have any requisites as mentioned in Rule 4B and 2nd clause to rule 4a. and the act defines GTA as(50b) “goods transport agency” means any person who provides service in relation to transport of goods by road AND issues consignment note, by whatever name called Now my question is, if the transporter does not issue consignment note. can tht service escape the levy of Service tax GTA.

rashmi (article) (59 Points)
Replied 28 January 2010

hiiii bhushan....wat i feel is even if the supplier is gettin da amt reimbursed from us service tax will be payable by us as finally the amount is being expended by us wheher in the form of reimbursement or otherwise.....soo i feel in either cases the org is liable to pay service tax under Section 2 (1)(d) ....wat sayy???? n ya another ques i have is dat if the supplier just sends me his bill not accompanied by the consignment note but he is showing the freight charges separately in his bill...will i be liable to pay service tax on da freight amount den???? coz again da ultimate liability is being borne by me..... :(

1 Like

Bhushan (Article) (91 Points)
Replied 28 January 2010

well...see if u have consignment note then toh it becomes very easy.because it clearly states who is to pay. IF NOT THEN i guess , v hv to see the terms of contract,it must be written therein as to who is liable to bare the freightage and thereby the liability of service ttax.

Bhushan (Article) (91 Points)
Replied 28 January 2010

hey...there was a commitee formed headed by Mr. Bharadwaj. read the report of that commitee and all doubts will be cleared.

mudassar (ca final) (134 Points)
Replied 29 January 2010

here s ur answer rashmi, service tax is to be paid by the person bearing the freight charges in any case irrespective of any consignment notes from the supplier , this is because , their was a comittee appointed under mr bharadwaj , a member of cbec , the comittee suggested that since the transport companies were small and would he hard for them to comply with service tax rules , it is rather preferable , esspecially in case of consignment , that who ever is paying the freight charges , pays the service tax to the govt .(well this is applicable if the consignor/consignee , who ever is bearing the freight charges , in the ORGANISED sector ), take care

rashmi (article) (59 Points)
Replied 29 January 2010

Thanksss Bhushan and mudassar....but can anyone of u provide me with the link toooooo......Thank you... :)

Bhushan (Article) (91 Points)
Replied 29 January 2010

well i got the hard copy of the summary of tht report,in a Service tax notice from the department,if i get the Link i shall mail it to u. N ya i hv some querry in excise forum n also in audit forum. so if n when u get time.check out and see if u can contribute anything to it.

RADHIKA JALAN (agarwal) (1521 Points)
Replied 29 January 2010

i agree with mudassar........

Riaa Jaiswal (Article) (29 Points)
Replied 04 February 2010

hii...rashmii...i just happened to go through your contributions..n m really very impressed by your knowledge and da way u present your cases...Hey if possible please do go through my query in audit forum named "Unpaid Bonus" and do let me know your opinion..Thankss a lot...n awaiting your reply...