service tax on Goods Transport Agency (GTA)


This query is : Resolved 

(Querist)
07 October 2007 Hello Everybody

This is Mohammad Ghouse, I am in CA Finals. I need a clarification on service tax on GTA in the following situation:

Whether a firm incuring transportation expenses for moving its own goods ( & issuing its own Consignment note) need to bear the service tax ?

What I feel is at some point / some one has to bear the service tax in the whole process of moving of goods. In above discussed case since the firm issuing its own consigment note and incurring expenses on its own account i.e., transportation is not done for others goods. In this case is there complete escapement from service tax on GTA.

pl. clarify.

Good Luck & warm reg.

Ghouse

08 October 2007 What exactly you mean by issuing its own consignment note? Does it mean it uses its own vehicle for supplying? In such a case you have to mention whether the goods are excisable. The answer will depend upon what you clarify further.

09 October 2007 In this case the service provider is vehicle operator and reciever is firm. frieght is paid by the firm. There is consignment note and transportation service. Firm has to pay service tax subject to notifications.

Ravikumar.G (Expert)
10 October 2007 The Full GTA is available in our files portal. Kindly down load it.

10 October 2007 As fright is paid by the firm, Servive Tax will be paid by the firm subject to 75% abatement per the notification.


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