Interpretation of law

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Lalit Nyati

Student

487 Points Joined July 2011

Interpretation of Service Tax Law in Mega Exemption in case of GTA:

a) Goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

b) Goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

Is tha means:

a) GTA collect goods from one our party, exempt the bill below Rs.1,500/-

b) GTA collect goods from more than one our party, exempt the bill below Rs.750/-

Please verify the interpretation.

Replies (2)

Manish K.Gandhi

Superintendent

966 Points Joined October 2013

I understand as in case, you sent goods as parcel/parcels to consgnee and total reight is below Rs. 750/- or if you send large consignment in truck loaded for your consignment and freight for each truck is below Rs. 1500/- the same are exempted.

As per Rule 2(1)(d)(v) as amended, in case of Factory, Company, Corporation, society/co-op.society, C.Ex.Regd Dealer, Body Corporate or Partnership firm is consigner or consignee and pay freight to Goods Transport Agency, they are required to pay S.Tax.

GTA also eligible for SSI Threshold limit of Rs. 10 lakh wherein where S.Tax paid by receipient and other exempted service can't be accounted for. After crossing such limit, GTA has to charge, collect S.Tax from any person other than person covered in Rule 2(1)(d)(v) as amended and pay to Govt.