GTA service tax

Notification No. 1/2009 ST dated 05.01.2009 has exempted following services when provided to GTA for use by the said GTA to provide services to a customer in relation to the transport of goods by a road to a customer.

 

(a)   Clearing and forwarding agent

(b)   Manpower recruitment or supply agency

(c)    Cargo handling agency

(d)  Storage or warehouse keeper

(e)   Business auxiliary service

(f)     Packaging activity

(g)   Supply of tangible goods without transferring effective control and possession service

 

The invoice issued by such service provider, providing services should mention the name and address of the goods transport agency and also the name and date of the consignment note, by whatever name called, issued in his behalf.

 

 

 I can't understand above notification Please give me brief descripttion with proper example of above topic

Replies (1)

Issue 1.

W.r.t GTA, the recepient of the service is supposed to pay tax, hope this is clear. 

Issue 2.

When a person provides service to a GTA, the sefices as specified in notification, then service tax shall be nil, meaning the service provider need not collect service tax from such GTA, if above mentioned services are provided to GTA.

Ex: If a packaging service provider provides service to GTA, service provider need not collect service tax. Provided, such packaging service must be used in providing goods transport service by the GTA. 

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