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Service tax on GTAs : Make it 2.5 per cent with no strings attached


Service tax on GTAs Make it 2 5 per cent with no strings attached

Sir,


I am working in manufacturing industry and we are purchasing raw material through transport like AFL Logistics,Gatti Cargo and we are paying freight charges but the transporter himself collected the freight charges and with service tax.

We are registered with Service tax dept in GTA service.Dept asking to pay service tax for freight.But Transporter also charging service tax.

Kindly reply


ramesh ramesh 18/11/2006

 
Re :Service tax on GTAs Make it 2 5 per cent with no strings attached

At present the GTA levy is cast only on the service recepients who pay the freight to the transporter except the consignee and the consignor are individuals. you being a company and also paying the freight to the transporter, as on date, only you are liable to pay the service tax on GTA. The transporter is not required to pay and even if he pays that shall not exonerate you from payment. so ask your transporter not to pay henceforth and you discharge it yourself. for the past, keep your fingers crossed!

jk

jaikumar seetharaman 18/11/2006

 

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