Service vendor Vs GTA vendor .

hansika

Hi folks

Could u explain the difference between the Service vendor Vs GTA vendor .

Deep

GTA vendor is exclusively a transport vendor, i.e. Goods Transport Agency.

ssingla

Deep wrote:

GTA vendor is exclusively a transport vendor, i.e. Goods Transport Agency.

Not entirely correct. The basic difference is that the GTA vendor will satisfy the following conditions:
a) The vendor will be in the business of providing transportation services.
b) The vendor does not charge service tax on invoice and the person receiving the services (i.e. client) needs to calculate service tax and deposit the same to the government.

There are several transport agencies which has taken service tax registration and charge service tax on invoice and are hence not classified as GTA Vendor.