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
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
For more information contact at me@mrpraveen.com www.mrpraveen.net
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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