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Gourav Mehta (Querist)
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02 April 2009 Hello ! Freinds
In case of Goods Tranport by road recepient of service is liable to pay the Service Tax. But, for the purpose of registration or to decide the liability to pay whose turnover is to be considered Whether the transporter or the receiver. And how it is to be Calculated.
What if the turnover of either of the two exceeds Rs. 10lacs and other one is below taxable.

Thanks and Regards

Gourav Mehta

Dayal

Dayal (Expert)
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02 April 2009 The threshold limit of exemption is not applicable in respect of GTA.

Notification No. 35/2004-ST has amended the Service Tax Rules, 1994 and Rule 2(1) (d) (v) has been inserted. The said Rule provides that in case the consignor or consignee of goods is-
i) a factory registered under the Factory Act, 1948;
ii) any company established under the Companies Act, 1956;
iii) any corporation established under any law;
iv) any society registered under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India;
v) any co-operative society established under any law;
vi) any dealer of excisable goods, who is registered under the Central Excise Act, 1944
vii) any body corporate established, or a registered partnership firm,

then 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 is liable to pay service tax.

I trust the above is clear and you may accordingly evaluate the applicability in your case

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Gourav Mehta

Gourav Mehta (Querist)
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02 April 2009 Thank you Sir,

But you mean to say that a service receiver of above caegory is required to get himself registered only to pay the service tax on the GTS received by him, irrespective of the fact that he is not the provider of any other taxable service and irrespective of the amount of service he received.

And who will be eligible to get the credit of the service tax paid. Service receiver or the transporter.

Thanks and regards
Gourav

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
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02 April 2009 If you belong to one of the seven categories as mentioned above by Mr Dayal and as consignor or consignee you are paying the freight, then you would be liable for payment of service tax on 25%(now unconditional w.e.f 01.03.2008) of the freight charges .For discharging your liability you have to register yourself with the Service Tax Dept. It does not matter whether you are have any central excise or service tax liability.

You will be eligible for CENVAT credit on inward transportation and outward transportation upto the place of removal.

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