Service tax on Transportation of goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2011 One of my client is a dealer in Automobile spare parts. once or twice in a month he keeps purchasing goods from neighboring states & pays transportation charges around Rs,10,000/- to Rs.15,000/- per shipment. ( Per annum Transportation charges will be around Rs.5 to 7 lacs.) No transporter is charging him service tax on transportation. should my client get him self registered with service tax & start paying Service tax under GTA.

U S Sharma

U S Sharma (Expert)
Follow

15 May 2011 yes,

your client is liable to pay service tax on such GTA services used @ 10.3% on 25% of transport cost.

he has to get registered himself as service receipent under GTA and file returns.

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2011 Thank you sir

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