Trailer and lorry hire charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2017 Sir.... we are engaging lorry/trailer for shifting of materials from work shop to project sites. my question is..
1. who is liable to pay service tax
2. rate of service tax.
3. If st paid by us. can we eligible for availing cenvat credit on payment of our liability.
Please clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 February 2017 No service tax payable in case it falls under road transport as per negative list (p). Service tax at 15% on 50% value payable under RCM in case of material transport within factory. Cenvat credit can be availed.

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2017 Thank you sir.
One more clarification needed. on hiring of lorry for general purpose. who is liable to pay service tax, at what rate is applicable... Please.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 March 2017 No service tax payable by lorry owner if he hires lorry to goods transport agency.

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