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Service tax on transporatation

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This query is : Resolved

MAAZ (Querist)

25 April 2016 AS PER MY KNOWLEDGE SERVICE TAX ON TRANSPORT HAVE TO PAY BY SERVICE RECEIVER.. MY CLIENT RECEIVE MATERIAL BILL AND TRANSPORT BILL INDIVIDUALLY ..

SO I NEED TO PAY SERVICE TAX ON IT WHETHER HE HAVE SERVICE TAX NUMBER OR NOT...?? PLEASE GIVE ME BROAD EXPLANATION ON IT...
THANKS

2) MY CLIENT IS DEVELOPER.. HOW MUCH TAX HE HAVE TO PAY ?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

25 April 2016 Service Tax on Transportation of Goods by Road is payable by the service recipient under Reverse Charge Mechanism. To qualify as Goods Transport Agency Service, the Transporter should issue a Consignment Note covering the relevant points. If no Consignment Note by whatever name called is issued then the transportation is not Goods Transport Agency Service. Check up the Service Tax Rules for details of Consignment Note.

In case the transportation is covered under GTA Service, your client has took registration as Goods Transport Agency Service Receiver. Service tax is payable after 70% abatement i.e. on 30% of the invoice value. No CENVAT Input Credit will be availble on GTA Service Tax paid under RCM.

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