Applicability of service tax

In our view,

1) If your GTA (Goods Transport Agency) as per scetion 65B(26) of finance Act and issueing consignment note then reverse charged mechnism will arise & person who is receiving services will be resonsible to pay service tax. That is normal.

2) In case of GTA, services of hiring vehicle for trasnportation of goods is exempt as per Otem 22 of Notification No. 25/2012 ST dated 20.06.2012. So in our view here there is no liability for services your are taking from other transporter.

Subject to since for each transportation whether from your own vehicle or taking services of other trasnporter, your are issuing consignment note or such other note.

The above is our view subject details to facts & circumstances. This view may differ case to case.  We are not bind with above view.