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Applicability of service tax??

ARPIT (student) (62 Points)

27 January 2015

I am a Transporter, filling return u/s 44AE. Now my income for the year is exceeding Rs. 10,00,000. Will this attract service tax provisions as service tax on transporter...

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kiran surana (321) (26 Points)
Replied 27 January 2015

If your value of taxable service exceeds₹ 10 lacs in any financial year , then service tax is payable on value of service in excess of ₹ 10 lacs in the first year, thereafter from next year onwards pay service tax on whatever is the value of service provided.

Aditya RVS (Practice) (221 Points)
Replied 01 February 2015

Given that you are a transporter, Service Tax under reverse charge is payable by the recipient of service, in case of service of "Goods Transport Agency". Please refer to the definitions as below:

Hence, in any case, you are not liable to pay service tax as a provider of service if you satisfy the definition of Goods Transport agency, but the person to whom you are providing service, is liable to pay service tax on 25% of the value (subject to your not availing input credit), considering the Notn No. 26/2012 as amended by Notification No.8/2014-ST (Serial No. 7 as enclosed below), dated 11-7-2014, if the service receiver falls under any of the categories as specified in the Rule 2(d) of Service Tax Rules, as enclosed.

It is advisable for you to obtain service tax registration and mention the fact of liability of the service receiver on your consignment note or invoice, as the case may be.

[(d)

"person liable for paying service tax",—

(i)

in respect of the taxable services notified under sub-section (2) of section 68 of the Act, means,—

(B)

in relation to service provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—

(I)		any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(II)		any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;
(III)		any co-operative society established by or under any law;
(IV)		any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(V)		any body corporate established, by or under any law; or
(VI)		any partnership firm whether registered or not under any law including association of persons;

any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage:

Services of goods transport agency in relation to transportation of goods.

CENVAT credit on inputs, capital goods and input services, used for providing the taxable service, has not been taken 1[by the service provider] under the provisions of the CENVAT Credit Rules, 2004.

(25)		"goods" means every kind of movable property other than actionable claim and money; and includes securities, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;
(26)		"goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;