09 July 2013
Helo Please hereby confirm the following query: a)Where a person who is running the petrol pump under a dealership from Indian Oil Corporation Ltd. Under a dealership agreement all the cost of transportation of oil from the company premises to the workshop of dealer will be met by the company. In the present case, dealer owns a truck and uses the said truck for the transportation of oil from the premises of company. Now as per the agreement company paid 1,100,000/- to the dealer.In this fact of case my quries are as follows: A)Whether above mentioned receipt can be reduce from the cost of purchase of oil from the company and B) whether above mentioned receipt would be liable o service tax or not ? If yes under which type of service it would be liable to service tax??
10 July 2013
Transportation by lorry owner or operator not liable as they are goods transport operators and not GTA [ agent] prior to negative list. After negative list has come transportation of goods other than by way of courier or GTA are excluded from levy.
CAclubindia
