Service Tax for Transport Sub contractor

This query is : Resolved

Mahesh (Querist)
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13 March 2008 1) One of my client is a transport sub-contractor.
2) Principal of the above is a corporate entiry who have awarded contract for unloading the material from wagons and transportation of raw material from railway station to the factory site to the contractor. Who in turn has awarded sub contract for the same to my client.
3) He is responsible to hire the cranes, trailors etc and to arrange for labour and pay them the hire charges and labour charges. In turn, he raises bill on the contractor for subcontract charges.
4) What is the service tax liability of my client in this regard? Is he liable to get himself registered and pay service tax? If yes, what would be the assessable value.
Thaks in advance/

CA Praveen Chopra

CA Praveen Chopra (Expert)
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13 March 2008 In GTA services, service tax is payable by the person who pays the freight.In your case your client raises bill to contractor & contractor in turn raises bill to party who ultimately bear the freight.So final party will bear the service tax.
So your client need not to get itself registered & pay the service tax.

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