Service tax for dealers who pass on cenvat

Others 542 views 3 replies

Dear Sir,

I am the proprietor of Venus Welds.

We are dealers registerd in Cental Excise to pass on CENVAT benefit to our customers.

The constitution of my firm is Proprietorship.

I used to get the consignment from our principal in Chennai Through Lorry.

The loory trasport is un-organised and the they do not issue us any Consignee Note.

But, we used to get thier sign in our Payment Voucher mentioning the Registration Number of the Lorry and the amount paid to them. Like TN 51 7006 Payment Rs.7,000/ towrds paid to Chnennai to Trichy for 1005 Kgs.

Our range of Central Excise asks us to pay Service Tax for the service received by us foe above.

Whether they are right is asking us so. Our turnover is 65Lakhs per annum.

Kindly help me.

Thanking you.

A.Balasubramanian

 

 

Replies (3)

 

Dear Balu,

 

Service tax liability under reverse charge mechanism gets triggered only if the goods transport is an agency, so check with those transporter.

As far as turnover is concern, there’s exemption limit as like in normal charge.

 

 

If the transporter is not issuing consignment note then you are not required to pay service tax
Dear Sir. 3 conditions viz. (1) Issuance of consignment note (2) by GTA & (3) for transport of specific goods by road involving freight more than Rs. 750/1500 are to be fulfilled for the levy of ST under GTA. As 2 conditions viz. (1) & (2) above are not being satisfied, you are not liable to ST


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