S.tax on gta

This query is : Open

Guest

Guest (Querist)

01 December 2013 Dear Experts
We Pvt ltd company pay the transportation charges to the vehicle owner on transporting our goods from our place to the place of buyer

and the Vehicle owner does not issue any invoice / consignment note

then I want to know whether we are liable to pay service tax on such amounts in absence of any invoice or consignment note

Kindly make me clear

Goods transport agency” means
•any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.

CA S K MISHRA

CA S K MISHRA (Expert)
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01 December 2013 There is no excuse from payment of service tax on the plea that, the transporter has neither issued any invoice or consignment note.

You may deny that you have not received any consignment note or invoice but can not deny that you have not made any payment to the transporter, as the payment to the party is reflected in your books of account.

Irrespective of the fact that, whether a service provider /recipient has issued any invoice or not , if a service is not covered under "Negative List", it attract service tax.

Again, Goods transport by road is a taxable service under Service tax rule and it is covered under reverse charge category, where in the liability of payment of service tax has been bestowed on the service recipient. Service tax is payable after availing 75% abatement.

As such in the instant case, you are liable to deposit the service tax on transportation charges paid. However, no TDS is applicable on Transportation charges.

Guest

Guest (Querist)

01 December 2013 but sir we pay daily Rs. 3000 to Rs.4000 to the transporter (service provider) for delivering our goods to different Buyers

and each time we pay them Rs.600 for one round trip

then what sir