Exemption Limit of Rs.10 Lakhs applicable to GTA?
This query is : Resolved
04 July 2011
I am running a proprietary business of transportation of Goods by Road, we don't owned any Goods Carriage ( Transport Vehicle). I am confused in certain matters regarding Service Tax.
My questions are :
1) Whether I am a Goods Transport Agency? ( My CA registered my proprietary as a GTA)
2) If service tax is applicable to me than What is the assessable for service tax applicability?
3) Whether Exemption limit of Rs.10 Lacs is applicable to GTA?
4) Initially we are paying service tax but at present our CA surrendered my ST-2 certificate because our turnover was below Rs.10 Lacs. But in this FY 2011-12 we are expecting turnover more than Rs.10 Lacs Rupee.
5) If he (CA) had not claimed exemption of Rs.10 Lacs initially than can it be claimed now?
Dear Sir Kindly help me out in this Crucial case. Also let me know any specific notifications or circular regarding this.
My questions are :
1) Whether I am a Goods Transport Agency? ( My CA registered my proprietary as a GTA)
2) If service tax is applicable to me than What is the assessable for service tax applicability?
3) Whether Exemption limit of Rs.10 Lacs is applicable to GTA?
4) Initially we are paying service tax but at present our CA surrendered my ST-2 certificate because our turnover was below Rs.10 Lacs. But in this FY 2011-12 we are expecting turnover more than Rs.10 Lacs Rupee.
5) If he (CA) had not claimed exemption of Rs.10 Lacs initially than can it be claimed now?
Dear Sir Kindly help me out in this Crucial case. Also let me know any specific notifications or circular regarding this.
S.P.Mahanta
(Expert)
04 July 2011
Answers to questions are as follows:
1)Yes. Covered under GTA,(zzp), clause105 of sec65 of Finance act1994.
2)Assessable will be gross value of service provided.
3)Yes.
4)Fresh ST-2 certificate to be obtained from dept:with reference to previous ST-2 surrendered.
5)Yes. Liability to pay service tax on crossing exemption limit.
For Specific notifications/Circular pl: visit www.servicetax.gov.in
1)Yes. Covered under GTA,(zzp), clause105 of sec65 of Finance act1994.
2)Assessable will be gross value of service provided.
3)Yes.
4)Fresh ST-2 certificate to be obtained from dept:with reference to previous ST-2 surrendered.
5)Yes. Liability to pay service tax on crossing exemption limit.
For Specific notifications/Circular pl: visit www.servicetax.gov.in
Message likes :
1 times
04 July 2011
Yes I agree with the experts. If your gross turnover is likely to exceed then apply for new Registration and once your turnover exceeds 20 Lacs then you charge the Service Tax in the bill and pay immediately after taking the benefit of set off if any.
CA. Krishna K Neeraj
(Expert)
04 July 2011
Agreed with expert
04 July 2011
With respect to consignment note I am issuing "Billty" for acceptance of goods from customer, we do not own any transport vehicle hence we can not issue lorry receipt. Whether a "Billty" can be termed as Consignment note?
Further we are providing services to Specified person i.e consignor or consignee whosoever is paying freight is liable for service tax and to them we are also issuing Invoice after the goods delivered to there destination. In this case we are not at all liable.
But we also provide service to Individual not covered in specified class group and the amount charged by us is more than Rs.750 per consignment in most of the cases. We do not issue any invoice to them for the delivery of goods to there destination but it is considered as part of my sales as in case of specified person.
Whether I am liable in the above case?
Further we are providing services to Specified person i.e consignor or consignee whosoever is paying freight is liable for service tax and to them we are also issuing Invoice after the goods delivered to there destination. In this case we are not at all liable.
But we also provide service to Individual not covered in specified class group and the amount charged by us is more than Rs.750 per consignment in most of the cases. We do not issue any invoice to them for the delivery of goods to there destination but it is considered as part of my sales as in case of specified person.
Whether I am liable in the above case?
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