Applicability of provision of gta on transport of currency

Save Share

This query is : Resolved

ramesh bilimale (Querist)

28 November 2013 RBI transfers currency between there own currency chest. were a GTA transports currency on between of RBI's currency chest. But as per the definition of goods, in sale of goods ACT 1930, currency or money are not goods. does it means service tax is exempt because GTA is providing service/ transport which are not considered as goods .

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

28 November 2013 your interpretation is wrong...gta is liable only if frieght is paid by gta else not...finance act 1994 do not speak about the topic in relation to gta as discussed above.

Ganeshbabu K

Ganeshbabu K (Expert)

28 November 2013 Services provided by any person to RBI for which service tax is payable by RBI u/s. 68(2) or u/s. 66A fully exempted.

ramesh bilimale

ramesh bilimale (Querist)

28 November 2013 Mr sampat. you have understood my question wrong. Here GTA giving a bill for transportation on currency, were NO freight is paid by GTA to any one... bill is for transportation of cash were cash is not considered as good , by definition of goods.

Mr ganesh, negative list 66D, entry(b)describe only service provided by RBI , and not TO RBI. It is not exempted in Mega Exemption List (No.25/2012).

Please suggest whether service Tax is applicable in this condition .

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

28 November 2013 Mr ganesh is correct..though not exempted in mega exemption not no. 25/2012 but exempted u/s 68(2) or 66 under finance act 1994.

ramesh bilimale

ramesh bilimale (Querist)

28 November 2013 Section 66 removed from 1st day of July, 2012. plZ keep in mind, RBI is not govt or local authority. It is statutory body.

Notification No. 22 /2012-Service Tax

G.S.R.___(E).- In exercise of the powers conferred by the proviso to section 66 of the Finance Act, 1994(32 of 1994), the Central Government hereby appoints the 1st day of July, 2012 as the date with effect from which the provisions of the said section 66 of the said Act shall not apply, except as respects things done or omitted to be done before the said section 66 so ceases to apply.

Ganeshbabu K

Ganeshbabu K (Expert)

28 November 2013 Dear Ramesh,
.
..
i confirmed once again,,Reversecharge not applicable to RBI,,this is for sure
.
.
because i did RBI Concurrent audit in my first year of articleship..
.
.
and even RBI have written to CBEC and later it is confirmed by it that Reversecharge not applicable to RBI
.
.
it is internal letter,,if you are doing in RBI ask them to write to CBEC ,,so that they will confirm for you also
.
.
the reason may be "currency" is not good hence service tax not applicable

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now