16 July 2012
Ours is a Private Limited company hiring goods transport vehicles from a proprietorship firm. No consignment note is issued. Payment is being made on kilometer bases. Whether such service is liable for Service Tax ? If yes, who is liable to pay S.Tax i.e. company or contractor and the rate of tax i.e. any abatement is allowed or not?
16 July 2012
GTA is a service which is liable to be discharged by the Service receiver. To qualify for this, the consignor or consignee should fall in the category of firm, company, registered under factories act, excise act etc., But GTA is not responsible. 75% abatement is allowed for such services. Consignment note is to be issued in future.
22 October 2012
It appears that your company is engaged in arranging Vehicles for transporting goods for their clients.It is assumed that you do not own vehicles that you hire to your clients. If this is the case, you are operating in the capacity of GTA; GTAs will have to issue a Consignment Note, where in they have to clearly mention certain details as to- 1) place of origin, 2) place of destination, 3) consignor of goods, 4) consignee,4) goods being transported, etc. GTA has to further endorse in his CN/Bill on the amount of ST to be paid by the Consigner/consigee as per law,etc. If all the above stated are satisfied, then the Consignor/consignee(the person who is liabile to pay Freight)is the right PERSON who is LIABLE to Pay such ST(@ 12.36% on 25% of the Freight Bill value)directly to Govt; and GTA is not required to pay ST. In case you are running your own fleet of vehicles and hiring them to Clients, then you NOT are required to charge ST on the amount of Invoice that you bill to your clients and the consignor/consignee too need not pay tax in the capacity of service recipient.
CAclubindia
