TMI BlogService Tax on TransportationX X X X Extracts X X X X X X X X Extracts X X X X ..... A is a goods seller. Buyers requested for the goods to be transported to buyers place at his cost. Seller arranged transport of goods, paid on behalf of the buyer and collected the money from buyer. If this is pure agent's service or service tax is applicable on such transaction? If applicable, then for which part of service (i.e, providing transporting service to buyer or on RCM for getting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransported the goods by truck owners)? This is the questione for F Y 2016-17 2017-18. - Reply By KASTURI SETHI - The Reply = Such transaction does not conform to the definition of 'pure agent' as per Service Tax Determination Valuation Rules. In this scenario, the concept of 'pure agent' does not come into picture.In simple words, a person who actually bears the amount of fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ight for transportation of goods by road will pay service tax under RCM. In your example, here the buyers have actually borne the amount of freight and so the buyers will pay ST and not seller A. - Reply By RAMASWAMY Advocate - The Reply = In my view, A separate bill has to be raised by the seller indicating the freight amount and the buyer has to pay the service tax on Reverse Charge Mechani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sm method. - Reply By KASTURI SETHI - The Reply = Sir, Your view is right . Preference-wise Service Tax on GTA is payable as under: 1.Consignor A (seller) 2. Consignee B (buyer) 3 GTA Here Consignor has paid on behalf of the buyer B. So B is liable to pay ST on the amount freight. Otherwise either Consignor or consignee can pay ST. - Service Tax on Transportation - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Query Started By: - Ayub Mohammad Dated:- 11-10-2021 Service Tax - Got 3 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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