06 February 2016
Sir , We are a manufacturing company but for some time we not producing rather purchasing the Finished goods from our sister concern which is in the same line of business .they manufacture on our behalf and send the finished product in their own goods carriage to our premises. Sir my question is that whether GTA provision for levy of service tax would apply on the goods carriage used by our sister concern for transportation of finished product from their factory to our premises ? If not , would service tax be applicable in this case?
06 February 2016
No service tax applicable if they use their own vehicle. Service tax applicable only if they use the services of goods transport agency.
06 February 2016
Thanks sir but can you please explain it in details , so that we can be equipped to explain before the department's representatives because we have taken that service as GTA service and paid service tax on it in the last service tax return of our's ? Sir one more question , if that is not a GTA service can it be included in any other kind of taxable service?
06 February 2016
Refer negative list p(i) transport of goods by road by other than goods transport agency or courier agency is exempted. Here the transport is by other than goods transport agency and courier agency hence it is exempted. Exempted service under negative list can't be considered under other services for service tax.
08 February 2016
Sorry sir i drafted my question wrongly earlier.Actually we are using the Vehicles of our sister concern for transportation of goods from our premises to our distributors / buyer.It is to be noted that we pay rent on the goods carriage used by us . can u please guide us whether GTA provision would apply now since we are paying rent to our sister concern for using their vehicles??
CAclubindia
