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SERVICE TAX ON GOODA TRANSPORT AGENCY

CA SANTOSH SHETTY (SERVICE ACCOUNTS) (48 Points)

17 September 2010

IS SERVICE TAX IS PAYABLE IF A FIRM TRANSFER HIS GOODS FROM ONE PLACE TO ANOTHRE THRU TRANSPORT AGENCY.

WE HAVE RECEIVED A BILL FOR 25000/- FROM TRANSPORTER , HAS MENTIONED ST WILL BE PAID BY CONSIGNOR/CONSIGNEE.

SINCE WE ARE TRANSPORTING OUR OWN GOODS FROM ONE FACTORY TO ANOTHER , STILL ST IS PAYABLE.

IS THERE ANY LIMIT OF 10LK EXMEPTION?

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4 Replies

M .K. Jha (CA Final) (484 Points)
Replied 17 September 2010

As per my opinion, service tax exemption limit of Rs 10 Lk is allowable in that year where first time receipt from services upto of Rs 10 Lk, it can tak an exemption for that year but it has to pay service tax from the begning of next accounting year.

PRIMARY LIABILITY TO SERVICE TAX OF CONSIGNOR / CONSIGNEE.

Means in case if transporter can't receive service tax from consignor/consignee in that case it is the liability of transporter to deposit service tax by back calculation method on Bill.

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CA SANTOSH SHETTY (SERVICE ACCOUNTS) (48 Points)
Replied 17 September 2010

Thx Mayank

Please let me know , if consignor and consignee is same still ST is payable under GTA notification, if so, in that case also 10lk exemption limit is there?

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

YES ST WILL BE PAYABLE BY YOU AS U ARE AVIALING SERVICE OF TRANSPORTER BEING A PARTNERSHIP FIRM... N 10 LACS LIMIT DOES NOT APPLY IN CASE OF GTA SERVICE AS PER CLAUSE (v) of rule2(1)(d).. SO U NEED TO PAY SERVICE TAX FROM 1ST BILL ONWARDS..

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