Service tax (gta)

Dear Sir,

Prima Facie, it seems you are not liable to pay any service tax. Kindly email me the copy of consignment note issue by you to enable me to respond properly. Do not heed to the demnads of the officer, if any.

Regards,

Manoj Agarwal

servicetaxexpert @ yahoo.com

Respected Manoj Sir,

Actual fact of the case is that while performing my job in factory is on Contract basis because "No Consignment Note" has been issued by the Factory the work of transportation was inside the factory only just to move coal and other raw materials from facorty to warehouse within the premises of factory, so I am unable to produce any Consignment Note.  The main and most essential part of above mentioned issue, is that

1) Whether I am liable to pay Service Tax on previous Bill on which no service tax had been charged by me nor collected any service tax from the facorty ?

2) Is there any rule or provision in Law, that  the Superintent or Dy. Commissioner have power to compel me to pay the service tax on previous bill on which no service tax was charged or collected by me?

3) If the Facorty is no providing me the Consignment note than I am not in purview of "GTA" nor in "Rent a Cab" Then under which category am i falling?

4) Please inform me Manoj Sir, Is there any Circular, Notification or Judgement by apex Court in favor of assessee ?

Thank You. Please do reply.

You are not providing Rent A Cab service. And as you have given your vehicles like trucks, jcb machine, etc on hire basis to a factory, and since you are not issuing any consignment note, then you can not be said to be providing GTA Service and the benefit of abatement of 75% is not availabe to you. 

Depending upon terms and conditions of the contract, if there is a transfer of right to use goods (vechiles), then service tax is not payable, otherwise you are liable to pay tax @ 12.36% under the head 'supply of tangible goods' or 'cargo handling services'.

If you are liable to pay tax, the tax department can recover the same from you irrespective of whether you have actually charged/collected the same from service receiver or not. 

Respected Sir, It means the entire issue depends upon the "Transfer of Rights to use" in the contract with the factory, if so made with the factory then who is liable to give tax.

1) What is the definition of "Transfer of Rights to use" ? Please Specify.

Thank You.

Respected Sir, Content of Contract are here:

Work order :

Sub:Supply of JCV Machine on hire basis

Term & Condition :

1) The JCB should be in good condition.

2) The JCB operator should be well trained with good behavior and no indiscipline activity will be excused and at once JCB operator should be replaced by another operator and shall have to be provided by the owner of the Vehicle.

3) Due to any reason what so ever it may be, if the JCB is not workking due to breakdown, the payment will be made on pro-rata basis.(12 Hrs of non availability of the JCB due to maintenance/breakdown is tolerable in a month)

4) The diesel tank should be air tight condition.

5) The speedometer, hours meter & fuel meter should be in working condition.

6) The diesel which will be supplied by Facorty itself at the entry, the tank will be filled up completely by us and the amount will be debited and in the same way. When vehicle will be released for after filling the tank completely by us.

7) Diesel wil be in our scope.

8) JCB Operator has to get the working log book signed by the manager authorized by factory.

9) Any other consumable like Engine Oil, Grease etc. will be your scope.

10) This order is one month basis, i.e. when we do not have work at our site, we may demoblize JCB on our verbal instruction & engage it when we need.

11) For any damage or loss of facorty property due to mal operation by your workmen, cost of repair / replacement will be deducted from your bill.

12) You must bear fully the financial and other liabilities in respect of employment injury /fatal of your workman to be engaged by you.

Under such circumstances of work order / contract what is the scope of definition of Transfer of right to use, is it fall in ambit of "Service" or not.

To not fall in purview of Service Tax, should an agreement or contract of lease could help in the time of proceedings.

Respected Manoj Sir Please reply upon my query.

Thanking you.

Manoj Sir Please reply................From your point of view what should be the contents of the Contract....

1) Do lease agreement will help me to come out from the purview of Service Tax.

Please reply and give your advice.