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Service tax

Nishtha Narielwala (Tax Consultant) (131 Points)

04 February 2013

Hi,

Is service tax payable on GTA services availed for providing services which are exempt?

Eg: If a contractor avails GTA services to receive sand, bricks etc., for executing a construction service that is exempt, is he liable to pay ST on the GTA services availed by him?

Kindly help!!

Thank You!!

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4 Replies

V.Rajalakshmi (proprietrix) (65 Points)
Replied 05 February 2013

Dear Nishtha

Kindly refer education guide issued by St, GTA is exempt only in the following circumstances

21. Services provided by a goods transport agency by way of transportation of -

(a) fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;

(b) 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

single consignee in the goods carriage does not exceed rupees seven hundred

fifty;

1 Like

suraj gahlout (student) (47 Points)
Replied 05 February 2013

YES, SERVICE TAX IS PAYABLE. AS MR. V. RAJALAXMI EXPLAINED ABOVE.

1 Like

Manoj Agarwal (Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com) (3456 Points)
Replied 06 February 2013

Dear Nishtha,

Please note that the liability to pay service tax on GTA is shifted on the service receiver, vide notification no. 30/2012 ONLY if the person liable to pay freight is:-

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e) any body corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons;

So if you are covered above and also liable to pay freight, then only you have to pay service tax. Otherwise say, if you are a proprietorhsip firm who is not registered under central excise, then the tax shall be paid by the GTA. If you are not paying nor liable to pay freight, then also no tax liability on you.

Regards,

Manoj

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