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Classification of service

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CA JALPA

21 Points Posted on 27 March 2015

Three Parties :

Mrs. X , individual regi as GTA

ABC Pvt Ltd

PQR Ltd

Situation :

ABC Pvt Ltd has to give transport of goods service to PQR LIimited , issuing COnsigment Note.

ABC Limited using trucks of MRS X and other trasporters and transported Goods of 1000MT ( of which 400 MT By Mrs X Trucks + 600MT By other transporter ) to PQR Ltd ( and Billed for 1000MT @ 150rs to PQR LTD by 3.09% Service tax )

MRS X is billing to ABC Pvt Ltd for 1000MT @ 120 .

What should be service tax rate and Class of Service for MRS X??????? ( Note : MRS X charges for her trucks as well other trasporters trucks also , to ABC Pvt LTD )

Replies (1)

CA PAYAL GAJJAR

Personal Practice

102 Points Posted on 28 March 2015

I understand from u r que. that ABC Pvt. Ltd. is providing goods transportation service by way of issuing consignment note i.e. this company is GTA.

However as per notification no.25/2012 - st, it has been provided that services by way of giving on hire to GTA, a means of transport of goods shall be exempt i.e.Mrs. A is providing service to GTA by way hiring of truck then it is exempt.

But if Mrs. a is GTA i.e it provide service of transportation of goods and also issue consignment note then it is liable for service tax. but if service reiceiver is body corporate then reverse charge mechenism shall apply and service receiver will liable for service tax.