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Service tax GTA

Kannan (ASst. Manager Accounts) (32 Points)

18 May 2009

We are doing Transport business (Intermediate) between the truck owner and customer. we are not issuing any consignment note. Whether we will fall under Transport of Goods by road category or any other category. what is the percentage of Service tax to be charged. Can any body give me the circular issued by service tax dept.

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4 Replies

Satish (CA Final Student) (479 Points)
Replied 18 May 2009

You have not given full details as who issues consignment note, are your company's name appear as either consigner or consignee in the consignment note? Please post all the details

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 19 May 2009

The truck owner/ operator who doe snot issue any consignment note ( nor is required to do do) for the trasnport in my view is not liable under GTA service since he is a GTO

CA-ASPIRANT (CA-STUDENT ) (650 Points)
Replied 19 May 2009

Mr Kannan

Truck owner is not liable to service tax at all.

But as per your service nature, You may be called GTA because you are satisfying definiton given u/s 65(50b) of finance act, 1994.

as per service tax rule, GTA must issue consignment note,

But you are not issuing CONSIGNMENT note , then how you receive goods from the consigner.

Even if you get yourself registered with the Department you may not pay tax there on to an extent. only you will need to show in your invoice.

It becomes the liability of the person to pay service tax to the department who is actually paying freight u/r 2(1)(d)(v).

Thanks

ADITYA (Manager Finance) (742 Points)
Replied 20 May 2009

Mr Kannan,

You are a commission agent between Truck Owner & Consignors .

The quotation is who is liable for Service Tax under GTA ?

Presuming, you are only getting commission from Truck Owners, and freight is directly paid to Truck Owner, you are not liable to pay service tax under GTA ?

However, If you are earning commission beyound exempted limit (Presently 10 Lacs), you are liable to pay Service Tax under BAS.