Service tax on contract of carriage of waste material from c
This query is : Resolved
05 December 2015
We are constructing a building on behalf of our client. We have sublet this work to another contractor. Now We are paying a contract carrier for removing waste material from site.
What is our service tax liability on this carriage.
What is our service tax liability on this carriage.
05 December 2015
Service tax Should be Raised 14.5% on 30@ amount of Invoice by Receiver of Service so You have to Pay Service Tax @14.5% on Transportation on 30% Amount of Invoice.
Message likes :
1 times
12 December 2015
What will be the head of service?
12 December 2015
What will be the head of service?
24 July 2025
Regarding **service tax on contract carriage of waste material from construction site**:
---
### Situation:
* You are the main contractor.
* You have sublet the construction work.
* You pay a contract carrier to remove waste material from the site.
* Question: What is your service tax liability on this carriage?
---
### Service tax liability:
1. **Nature of service:** The contract carrier is providing **"Goods Transport Agency (GTA) service"** if they are registered as a GTA or just transportation service.
2. Since you are paying the contract carrier, the **reverse charge mechanism (RCM)** is applicable on certain transport services.
3. According to service tax law (prior to GST):
* If you are paying to an unregistered transporter (or non-GTA), you have to pay service tax on **30% of the amount paid to the transporter**.
* The rate of service tax was 14% + 0.5% cess = 14.5% (before GST).
4. So, **you (the receiver of service)** are liable to pay service tax under reverse charge on 30% of the invoice amount of the contract carriage service.
---
### Head of service for this:
* The service is categorized under **"Goods Transport Agency (GTA) service"** or if not GTA, then under **"Transportation of goods by road service"** (service tax on transport services).
---
### Summary:
| Who pays service tax? | How much? | On which amount? | Service Head |
| ------------------------ | ---------------- | -------------------------- | ---------------------------------------------------------------- |
| You (receiver) under RCM | 14.5% (old rate) | 30% of invoice amount paid | Goods Transport Agency Service / Transportation of Goods by Road |
---
Let me know if you want me to provide the exact notification or circular reference.
---
### Situation:
* You are the main contractor.
* You have sublet the construction work.
* You pay a contract carrier to remove waste material from the site.
* Question: What is your service tax liability on this carriage?
---
### Service tax liability:
1. **Nature of service:** The contract carrier is providing **"Goods Transport Agency (GTA) service"** if they are registered as a GTA or just transportation service.
2. Since you are paying the contract carrier, the **reverse charge mechanism (RCM)** is applicable on certain transport services.
3. According to service tax law (prior to GST):
* If you are paying to an unregistered transporter (or non-GTA), you have to pay service tax on **30% of the amount paid to the transporter**.
* The rate of service tax was 14% + 0.5% cess = 14.5% (before GST).
4. So, **you (the receiver of service)** are liable to pay service tax under reverse charge on 30% of the invoice amount of the contract carriage service.
---
### Head of service for this:
* The service is categorized under **"Goods Transport Agency (GTA) service"** or if not GTA, then under **"Transportation of goods by road service"** (service tax on transport services).
---
### Summary:
| Who pays service tax? | How much? | On which amount? | Service Head |
| ------------------------ | ---------------- | -------------------------- | ---------------------------------------------------------------- |
| You (receiver) under RCM | 14.5% (old rate) | 30% of invoice amount paid | Goods Transport Agency Service / Transportation of Goods by Road |
---
Let me know if you want me to provide the exact notification or circular reference.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
OR add as source on Google news
- Acquisition of a society by a company
- EPF withdrawal before 5 years and Disclosure in ITR-2
- Clarification on ITR 3: Is Sl. No. 64 required for 44ADA income?
- ITC Utilization on vehicle repair
- FORM 115BAC
- 2.25 CRORE TRADER, NO CASH TRANSACTIONS,3CD APPLICABLE?
- Transfer of partnership interest in LLP
- Investment guidance for NRI
- I need itr code under 44D of TDS cut under sec 194c
- Tax Audit due date of FY 2024-25
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- GST on Restaurant service
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
- Switch over to Composition Scheme
- Gstr 9 and itc
- Tds on residential apartment purchase
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
OR add as source on Google news
CAclubindia
