There is a goods transport agent providing taxable service in respect of transport of goods by road. He does not own any truck but he only acts as an agent between truck owner and service receiver (consignor or consignee) and receives commission for the service provided by him. So is he liable to pay service tax ??? in case of goods transport agency it is the service receiver who is liable to pay service tax so whether there is any option available to the service provider (goods transport agent) to pay service tax himself ?
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Service tax liability for goods transporter
Replies (7)
in no circumstances GTA is liable to service tax...
if he is willing to pay there is no use coz GTA cannot avail input credit..so its not a good option and u wil find rarely any GTA wil pay ...
but also if he is willing to..then there is no stopping and nothing in act prohibits GTA to pay service tax
regards
SRIPAL JAIN
He is acting as agent but not as a GTA. So, he can't be covered under GTA service. He may cover under BAS or BSS services (please read this categories before applying). If his commission exceeds maximum limit, so he need to be pay service tax.
CA Akashdeep is correct. Commission agent is taxable under BAS. There is no provision in the statute whereby GTA can opt to pay tax
Thank you sir for your answer to my query but after refering to the provisions of Commission agent given under Business Auxiliary Services, i dont think a transport contractor would come under this category as for a commission agent a relationship of principal-agent must exist which is not so in case of goods transporter. He is not acting on behalf of some one but only as a middlemen between truck owner & client (consignor or consignee).
If Any fright is included in the purchase invoice then who is liable to pay the service tax , so, please reply me these question of my E-mail address and also tell me who is paid , 1) service receiver or 2) consigner who supply the goods for who issue invoice including fright and service receiver & consigner both have service tax regristration number,
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