Query on gta

Dear Shraddha,

As per Rule 4B of the Service Tax Rules, the invoice issued by the GTA should contain the following:
Serial Number; Name of the consignor and consignee;Registration no. of the vehicle; Details of the goods transported; Details of the place of origin & destination; Person liable for payment of Service Tax.

However, now that these Services are under Reverse Charge, and 100% of the Tax is payable by the Service Receiver, that is your client,even if the invoice is not issued in the above format, you will be required to comply with the provisions of the Reverse Charge Mechanism and pay tax on the said amount.

The service provider is providing the service of 'supply of tangible goods' and full tax @ 12.36% shall be chargeable. This is not a case of GTA Service and RCM is not applicable. The SP has simply bifurcated his invoice into hiring charges for DG and transportation. 

Agreed with Manoj agarwal ji.Also as you have mentioned that the service provider is using his own transportation this means there is no GTA involved in the case and therefore reverse charge is not applicable.

Service Tax is to be paid on the groos amount charged by the service provider for providing the service.The method is appropriate for paying the tax. 

Sir,

Please clear my doubt:

Hiring of Service attracts Tangible Goods Service @ 12.36%, however Transportation of Service by Road Service attarcts Service Tax (75% Abatment i e 25% of 12.36%) @ 3.09%

As per my view it should be 50000 X 12.36% = Rs 6180/-  &

                                              5000 X 3.09% =  Rs 154.5

Am I correct ?

No. The service provider has provided the service of giving on hire of DG Set. Transportation of DG set is integral part of the main service. Even if we consider this as bundle service, the essential characteristic of the service is hiring and not transporting. The service provider is not in the business of road transportation. 

Secondly, this is not a case of GTA service as no consignment note has been issued which is a pre-condition for any road transport service to be GTA service.

Thanks Sir, Golden Tips I have learned from you.