Service tax on Goods Transport Agency (GTA)

This query is : Resolved

CA Harsha.M (Querist)
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13 May 2008 1) Whether the basic limit of Rs.8,00,000 is applicabe to pay service tax by service receiver
2) Whether receiving consignment note is mandatory for paying service tax by the service receiver. And if the consignment note is not received, whether service tax is not payable by the service receiver.

Vijay Chitte

Vijay Chitte (Expert)
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14 May 2008 Ans (1) Rs. 8,00,000/- exemption is not available to the persons who are liable to pay service tax on GTA services as receiver of these services as per rul 2(1)(d)(v) of the service tax rules.

Ans (2)If you have not received c/ment note you are not liable to pay service tax as a service receiver. As per rule 4B c/ment note is mandatory which contains “consignment note” means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.

If the rule 4B is not complied with you, you need not to pay servie tax.

CA Harsha.M

CA Harsha.M (Querist)
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14 May 2008 The query has been resolved & I am very greatfull for the same.

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