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Service Tax - GTA

N.K.Bharath Kumar (Chartered Accountant) (60 Points)

14 September 2010

Hi Friends, Kindly clarify this query:

I am a flour mill owner. I collect wheat from X industries and grind it to produce aata, maida or sooji . . etc. I charge grinding charges for the same. I am transporting say two loads of maida to X industries. I raise bill to X industries as transportation charges for say 50 MT of maida * 100 per MT = Rs.5000 . Is there any taxable service that I provide? Should I charge service tax on the transport charges collected from X Industries?

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4 Replies

Kannan Iyappan (Company Secretary) (1496 Points)
Replied 15 September 2010

No , X industry to pay the service tax on GTA . In this case Rs.5000 *25% = 1250 * 10.3% = Rs.128.75 as services tax.

Kannan

1 Like

JINESH SHAH (PRACTICING CA) (151 Points)
Replied 18 September 2010

DEPENDS ON THE STATUS OF X INDUSTRY

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N.K.Bharath Kumar (Chartered Accountant) (60 Points)
Replied 20 September 2010

Thank you for the reply Mr. Kannan, Kindly clarify : I am a flour mill owner, I am raising my invoice for transportation charges. I am not giving any consignment note or way bill anything. I arrange lorries from outside for say Rs. 4000/- and charge to X industries Rs.5000/-. In such case also X industry should pay? Am I not providing any taxable service?

However, I am paying service tax on Rs.4000/- paid by me.

X industry is a public limited company.

JINESH SHAH (PRACTICING CA) (151 Points)
Replied 21 September 2010

I THINK IN THIS CASE X IS NOT LIABLE TO PAY SERVICE TAX AS U ARE NOT ISSUING CONSIGNMENT NOTE. SERTVICE TAX IN GTA IS APPLICABLE ONLY IF THERE IS CONSIGNMENT NOTE ISSUED.. U ARE RIGHT AT YOUR PLACE IN DISCHARGING SERVICE TAX LIABILITY ON RS. 4000.

THUS X INDUSTRY NOT LIABLE TO PAY SERVICE TAX.