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Applicability of gta - service tax

Service Tax (Legacy) 2900 views 6 replies

Need clarification on applicability of GTA - service tax on the below mentioned transaction.

A Limited company is engaged in selling Cattle feed which is exempt product.

Whether the transportation charges paid at the time of purchase of raw material as well as at the time of transporting the final finished product is taxable under the catagory of GTA for service tax?

Replies (6)
Its Taxable. Since you were providing service for transport is applicable at the prescribed rates.

If the service provider is  an individual, then you are the specified persons for making the service tax both at purchase and sales points.  You can avail 75% abatement and pay for the balance amount.  On the other hand if the service provider is a registered transport company and is collecting service tax in the bill itself, you need not pay the service tax.

Even though cattle feed is an exempted product, it has not been specifically exempted from GTA service tax applicability. Goods like milk, vegetables, egg etc. have been exempted.

Hence, you have to pay service tax after taking 75% abatement.

YES.TRANSPORTATION CHAGRE PAID FOR PURCHASING OF RAW MATERIAL IS COVERED IN GTA..

YOU CAN AVAIL 75% ABATEMENT.& BALANCE IS TAXABLE.

yes, taxable other than 75% of amount

There is a route for exemption:

1. Service Tax is not applicable for Agriculture Operation.

2. The term 'Agriculture' includes process of breeding cattle like cow, goat, sheet etc., except horse.

3. The term 'Operation' includes transport.

Hence, you are doing service to Agriculture Operation.   Hence, GTA is not applicable for transport of Cattle Feed.

This is my opinion

Regards

RBee


CCI Pro

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