Service Tax

Hi,

I am working with mining contractor company.Our company uses the services of individual transporter for removal of overburden from one area of mine to another area. We are paying them on per trip basis. Maximum area covered by transporter is 1.5 km in mines only. Maximum rate for 1.5 km is Rs.218/- per trip.During the day one transporter makes around 150 trips so he charge us Rs.32700/- so my question is whether receiver of service whether we have to pay service tax @ 2.575%. Also suggest me how we can avoid service tax in this scenario.What documents we have to collect from individual transporter.

 

With Regards,

Nehal A.Sejpal

Replies (1)

Neha

Under the service categaory GTA , specified person are liable to pay service tax instead of transporter . In case your comapny are covered under the list of specified person then  ur company have to pay service tax on transportation as well you can take the credit of such service tax payment . Otherwise transporter has the liability to pay service tax.

Hope this will be suffice for ur query

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