I want to share presicely the problem, we being the manufacturer of milk and ice-cream, use to contract with the vehicle owner who develop the vehicle fit to carry the milk and ice cream to our distributors and for this a trip sheet is handed over to him. after the delivery, he gets the payment as per contract on KM travelled, fuel charges per km, etc. He is not supposed to use the vehicle for any other purpose since that is meant for solely for distributing our products. We know for distributing the milk there will not be any service tax payable by us as GTA. We are not paying any service tax on ice cream also since the vehicle owner is not a transporter by his act and he is simply hiring the vehicle for our use for distribution and which by any means should not be covered as GTA as per FM spich. But we are booking the payment to the vehicle owner as outward freight charges. Now, my question is (for academic purpose) 1. if any GTA who is supposed to issue the consignment note but does not issue it then who will bear the service tax?
2. Is there any possibility that our activity may be called upon or questioned by the service tax authority in future if so under what ground? What should be your suggestion?
3. Can anybody please explain me who is a GTO and what are the basic difference between a GTA & GTO?
CAclubindia
