Service Tax on transportation
This query is : Resolved
Rajiv Ranjan Singh
(Querist)
10 June 2010
HELLO,
I wanted to know whether is there any SERVICE TAX on Transportation( Precisely speaking.. Transportaion of Fly Ash. This Fly ash is not going to any cement plant but being disposed at various locations( like low level lands etc) as decided by the company and the company is not paying any servioce tax to the principal transporter.
Please help
I wanted to know whether is there any SERVICE TAX on Transportation( Precisely speaking.. Transportaion of Fly Ash. This Fly ash is not going to any cement plant but being disposed at various locations( like low level lands etc) as decided by the company and the company is not paying any servioce tax to the principal transporter.
Please help
Shyam Lal Naik
(Expert)
10 June 2010
Fly Ash are by-product of thermal power plant and an input for Cement Plants.
Taxable under transport of goods by road service.
Taxable under transport of goods by road service.
Rajiv Ranjan Singh
(Querist)
13 September 2013
What uf it is disposed.....
24 July 2025
Regarding **service tax on transportation of fly ash**, here’s the key point:
* **Transportation of goods by road (Goods Transport Agency - GTA service)** is taxable under service tax law.
* **Fly ash**, even if being disposed of (not sold), is still considered "goods" for transportation purposes.
* So, **if you pay a transporter to move fly ash, service tax on GTA services is applicable** on the freight charges.
* The fact that fly ash is disposed (sent to low-level lands) **does not exempt transportation service from service tax**.
* The transporter (GTA) should charge service tax on the freight bill. If the transporter is unregistered, then the recipient of the service may be liable to pay under reverse charge.
**Summary:**
| Scenario | Service Tax Applicability |
| ------------------------------------------------ | ------------------------------------------------------------ |
| Transportation of fly ash (sold to cement plant) | Taxable under GTA service |
| Transportation of fly ash (disposed to lands) | Also taxable under GTA service, no exemption due to disposal |
---
**If your company is the principal transporter and not paying service tax, that is not correct** as per the law.
---
If you want, I can help provide the relevant legal references or notifications too. Would you like that?
* **Transportation of goods by road (Goods Transport Agency - GTA service)** is taxable under service tax law.
* **Fly ash**, even if being disposed of (not sold), is still considered "goods" for transportation purposes.
* So, **if you pay a transporter to move fly ash, service tax on GTA services is applicable** on the freight charges.
* The fact that fly ash is disposed (sent to low-level lands) **does not exempt transportation service from service tax**.
* The transporter (GTA) should charge service tax on the freight bill. If the transporter is unregistered, then the recipient of the service may be liable to pay under reverse charge.
**Summary:**
| Scenario | Service Tax Applicability |
| ------------------------------------------------ | ------------------------------------------------------------ |
| Transportation of fly ash (sold to cement plant) | Taxable under GTA service |
| Transportation of fly ash (disposed to lands) | Also taxable under GTA service, no exemption due to disposal |
---
**If your company is the principal transporter and not paying service tax, that is not correct** as per the law.
---
If you want, I can help provide the relevant legal references or notifications too. Would you like that?
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