Service tax- GTA

Dear Kiran Kumar,

Please clarify whether your client is providing GTA Service or is receiving Service from GTA.

In first case the answer will depends on the fact whether services are provided to organised sector or not.

In second case, the liability to pay service tax falls on you and there seems to be a default on the basis of information provided by you.

Please clarify.

Thanks for immediate reply.

Our client providing Manpower Recruitment or Supply Agency's Services and GTA service however, he has registered Manpower Recruitment or Supply Agency's Services only. He is providing services to organised sector.

Section 69 of the Finance Act, 1994 contains provisions relating to Registration.

Going by the language of the text which says that:

"Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in such manner and in such form as may be prescribed, make an application for registration to the [Superintendent of Central Excise.]",it seems that only when a liability to pay Service Tax arises, a service provider has to get registration. Therefore as far as you are not required to pay service tax you are not required to get service tax registration.

But in your case you are already registered with the department. You should get the name of GTA service included in the Certificate. Though there is no tax on the same, but this should be done to be on safe hand. As given in Rule 4 (5A) of Service Tax Rules, 1994 as amended, You may give additional information to be incorporated in the certificate.

Also as per Rule 2 (1) (d)(V) only in seven cases the service tax is to be paid by service recepient. In case service as GTA is provided to persons other than these seven, service tax liability falls on service provider only.

Rule 2(1) (d)(V) is produced below for reference:

"In relation to taxable service provided by a goods transport agency, where the
consignor or consignee of goods is,-
(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);
(b) any company 6[formed or registered under] the Companies Act, 1956 (1 of 1956);
(c) any corporation established by or under any law;
(d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or
under any law corresponding to that Act in force in any part of India;
(e) any co-operative society established by or under any law;
(f) any dealer of excisable goods, who is registered under the Central Excise Act,
1944 (1 of 1944) or the rules made thereunder or;
(g) any body corporate established, or a partnership firm registered, by or under any
law,
any person who pays or is liable to pay freight either himself or through his agent for
the transportation of such goods by road in a goods carriage;]"