Service tax on transport service.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 Respected Sir,
Please Clarify the following Statement:

Que Whether transportation service provided by the truck owner and truck operator to end user directly is liable to service tax?

Ans Service provided by truck owner directly to end user is covered by the negative list entry and is not liable to service tax.

My Company is covered under Reverse Charge System and getting bill form a person who is Owing a truck (same is driver) so there is any liability under Reverse Charge System.

Above Point is taken from book of well know Person.

Please clear above Point.

Thanking You

CA Suresh Jain

CA Suresh Jain (Expert)
Follow

24 August 2013 The service directly provided by the truck owner to the end user without issuing any receipt for the goods does not come under the GTA service and therefore not liable for RCM.

But,I beg to differ and do not agree that the service is in negative list. It shall be treated as Courier Agency service and therefore is a taxable service.Please refer section 65B (20) which defines "Courier Agency"

If truck owner is issuing LR or GRN then it is a GTA service and in such a case the service receiver is required to pay the service tax under RCM

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

Message likes : 2 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now