Whether truck owner is liable to pay service tax

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

22 February 2016 Dear Experts
In case of an individual who is having Two Trucks with National Permit.Whether he is liable to pay service tax on truck hire charges received by him?.
Rgds

praveen

praveen (Expert)

22 February 2016 Depends upon whether he is giving service to clients covered under reverse charge mechanism or not. For Eg. if he is giving service to individuals then he is liable to pay service tax. However, he can claim small scale exemption upto Rs. 10.00 Lakhs

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Ashish Chaudhary

Ashish Chaudhary (Expert)

23 February 2016 Negative list covers services provided of transportation of goods by road except when provided by GTA and Courier agency. Individual truck owners who does not issue consignment note and engaged in transportation of goods could be said to be operating as Goods Transport Operator and could claim benefit of Negative List.
If truck is given on hire to GTA, exemption could be claimed under Notification No. 25/2012-ST.
If truck is given on hire to other than GTA, it could be liable to service tax. Category for payment of tax could be Supply of Tangible Goods Service.
SSP exemption of Rs. 10 lacs could be claimed.

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