15 December 2010
In case of GTA,If the party only mention on bill that the consignee will pay the service tax for me .Is it treated as consignment note.
16 December 2010
Rule 4B of Service Tax Rules 1994 defines Consignment Note.
Rule 4B of Service Tax Rules 1994 defines "consignment note means a document issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency."
A consignment note generally has the following details – date, place where the note is made, name and address of sender and carrier, place of taking over the goods, date of taking over the goods, place for designated delivery, name and address of consignee, common description of goods and packaging, details of packages with gross and net weight, charges for carriage etc.
Thus, unless we have a note disclosing all the required details, the same in our view cannot be regarded as a consignment note and make the customer liable to service tax. A consignment note in our view unlike a Multimodal Transport Document issued under Multimodal Transportation of Goods Act 1993 cannot be regarded as being negotiable and constituting document of title to goods unless the consignor and the transferee agree with the transport operator that the same shall constitute document of title to goods.
Hence, only mention on bill that the consignee will pay the service tax for me cannot be treated as a consignment note.
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