Service tax on aplly to road contractor?

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 January 2012 Whether service tax applicale to Road contractor regarding avail service from Goods Transport Agency?

My client is providing service to Goverenmet as Road Contracor(partneship Firm ) (Which are exempt from Service Txa), now my quiry is that, if Road contract avail service from individual ( Goods Transpot Agency), then apply service tax if my client paid for that and consignor also Individual.

Arun Gulati

Arun Gulati (Expert)
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22 January 2012 If your output service is exempt that does not mean you are not liable to pay service tax on input service. You are liable to pay tax on service received from GTA on reverse charge basis. however, if you are receiving service from Individual truck owner not GTA, you are not liable to pay service tax.