SAC CODE FOR PROVDING COMMERCIAL VEHICLE ON HIRE FROM ONE GTA TO ANOTHER GTA

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This query is : Resolved

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This discussion clarifies the Goods and Services Tax (GST) implications when one registered Goods Transport Agency (GTA) hires out commercial vehicles to another GTA on a monthly basis. It confirms that such transactions are exempt from GST and advises that a Bill of Supply, rather than a tax invoice, should be issued. The applicable TDS section is identified as 194C, and the SAC code is not required for the Bill of Supply.

Shalini RN

Shalini RN (Querist)

10 January 2023 We are Registered Goods Transport Agency. We are intending on giving Commercial Vehicles for transportation of goods on hire (on monthly basis) to another Registered Goods Transport Agency. My queries are -
1. What is the SAC/HSN code for billing the Hiring charges from One Goods Transport Agency to another Goods Transport agency?
2. Is TDS deductible under 94C or 94I?
3. Is this particular transaction is considered as Exempt Sales?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 January 2023 1 It's exempt from GST.
2 194c TDS applicable.
3 yes.

Shalini RN

Shalini RN (Querist)

10 January 2023 Thank you sir, do we have to just mention it as Hiring charges without mentioning SAC code in the Bill and do we need to issue just Bill of Supply to them?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 January 2023 Yes, SAC code not required for bill of supply.

Shalini RN

Shalini RN (Querist)

11 January 2023 THANK YOU VERY MUCH SIR

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