Service tax on transportation

This query is : Resolved

muthukrishnan (Querist)
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22 August 2013 Dear Sir/ Mam,

I am working in a shipping company. We hired transportation from other company and provide service to our customer. we raised the invoice adding service tax 12.36%. few customer refused to pay and request us to put "service tax payable the customer directly" and few ask us to s.tax percentage is 3.09%. please help me out in this regards.

Muthu

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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22 August 2013 The objection of your customer is correct. you need not to charge service tax on Transportation as service provider. As per reverse charge mechanism Service Receiver is liable to pay service at the rate of 3.09%

muthukrishnan

muthukrishnan (Querist)
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22 August 2013 Dear Sir, well noted with thanks. Unfortunately we are not register under GTA, under business support service.

Ganeshbabu K

Ganeshbabu K (Expert)
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22 August 2013 If you are not registered under GTA and not giving any consignement..it is not GTA service

Please note Service by way of transportation of goods by road is in negative list – except services of Goods Transport Agency (GTA) and Courier Agency

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