Goods transport agency
This query is : Resolved
02 February 2016
Sir,In case a goods transport agency provides transportation services to a company assessee,hence how should he raise a invoice.Amt inclusive of service tax or not?
02 February 2016
Notification 30/2012 - Service Tax dated 20th June 2012 provides
"I. The taxable services,-
(ii) 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,-
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) 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;
(c) any co-operative society established by or under any law;
(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons;
II) The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:-
2.In respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road - (by service provider) Nil - (by service recipient) 100%".
Since the transportation services are rendered to a body corporate, as per the provisions of the said Notification the service recipient is liable to pay the service tax. As per the Point of Taxation Rules, the liability to pay service tax arises either on rendering the service, receipt of money or raising of invoice whichever is earlier. Therefore, a GTA who is not liable to pay service tax as provider should not include the Service Tax amount in his invoice. The invoice should be only for the basic amount with a note "Service Tax shall be paid by the consignor / consignee" without mentioning any amount.
"I. The taxable services,-
(ii) 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,-
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) 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;
(c) any co-operative society established by or under any law;
(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;
(e) any body corporate established, by or under any law; or
(f) any partnership firm whether registered or not under any law including association of persons;
II) The extent of service tax payable thereon by the person who provides the service and the person who receives the service for the taxable services specified in (I) shall be as specified in the following Table, namely:-
2.In respect of services provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road - (by service provider) Nil - (by service recipient) 100%".
Since the transportation services are rendered to a body corporate, as per the provisions of the said Notification the service recipient is liable to pay the service tax. As per the Point of Taxation Rules, the liability to pay service tax arises either on rendering the service, receipt of money or raising of invoice whichever is earlier. Therefore, a GTA who is not liable to pay service tax as provider should not include the Service Tax amount in his invoice. The invoice should be only for the basic amount with a note "Service Tax shall be paid by the consignor / consignee" without mentioning any amount.
05 February 2016
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