Service tax on gta taken on hire basis

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2012 Our company takes the truck on hire basis from a proprietorship firm which has 2-3 trucks. It enjoys the basic exemption limit of Rs. 10 lacs so it does not charge any service tax on the invoice raised. The company pays it on monthly basis @ Rs. 15000 p.m. The company then uses those trucks/ tempos for transportation of goods to its customers in the city and does not recover any amount for transportation of goods from its customers and company does not issue any consignment note.

Since we pay the transport company on per month basis and there is no consignment note involved in the whole scenario and here the service is in nature of hire and not service of transport, are we still liable to pay service tax on reverse charge basis to the service tax department?

@VaibhavJ

@VaibhavJ (Expert)

23 October 2012 Hi

Very good arrangement, here ther is no GTA services hence no ST under GTA.

Rgds//Vaibhav
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