Question25: CHA charging local freight from my client thru debit note attaching the bill of transporter. My client paying it to CHA, whether my cient should pay reverse charge (GST) and deduct TDS on payment of freight to CHA or Rcm shall be paid by CHA. There is no direct contract of transporter with my client.

Answer Reverse charge is applicable when the services are received from GTA. In this case GTA is providing services to the CHA and CHA is providing service to you. For the transport service, supplier is GTA and receiver is CHA. The CHA is giving only break up of his cost as per agreement with you. Therefore reverse charge will be paid by the CHA on his input service (GTA). As per Section-15 of CGST Act the CHA should add this value in value of supply given to you. (Reply dt. 23/4/2018)