Service tax on gta

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Purav (Querist)

10 October 2011 As per law Service tax on GTA is payable on reverse charges basis. i.e. the service receiver is liable to pay service tax. My question here is as under:

In cases of local & small transporters, i.e. the transporters who are not registered with the Service tax authorities, & they even do not provide any Lorry receipt (LR) or bill/invoice of any kind for the transport; whether service tax has to be paid by the service receiver on such kind of transport if their amount exceeds Rs. 750/- per trip.

U S Sharma

U S Sharma (Expert)

10 October 2011 as the vehicle has a unique registration no of RTO, service tax is payable by service receipent.

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CA Deepak S

CA Deepak S (Expert)

11 October 2011 Service Tax is payable only in the case of a GTA involved. In the case of individual lorry owners what we are paying is lorry hire charges and service tax is not applicable in this case.

You can find more details from the following
link
https://www.caclubindia.com/articles/print_this_page.asp?article_id=1182

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rajula gurva reddy

rajula gurva reddy (Expert)

11 October 2011 If the service receiver is not a limited company, partnership firm, society and if the single consignment charge exceeds Rs.750/- or single onetime vehicle charges exceeds Rs.1500/-, the Transporter has to dischrge the Service Tax liability. However, they can avail exemption up Rs,10 Lakhs in any financial year. If they exceeed the turn over of Rs.10 Lakhs in any financial year, they are not eligible for exemption in the follwoing fina ncial year.

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