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Applicability of service tax

This query is : Resolved 

19 August 2011 We have made vehicle lease/hire agreement with the truck owner for transporting the goods from our factory to the customers destination and for that service we are paying them fixed amount monthly. So whether the truck owner will be considered to be a GTA and Service Tax on the same is payable?

22 August 2011 Dear Vipul,

You are only paying Lump sum Fixed Amount to the Truck Owner and not the freight for each and every consignment transported. All other relevant charges such as Diesel Driver's Salary Etc are born by you directly. In such a case GTA is not applicable.

Howver, for the lease rent transaction you have to check up the "Supply of Tangible Goods Service" for The Service Tax liability


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