Service tax on gta

If you are charging for the transportation of a non-agricultural produce then service tax liability is of the person who is paying the freight may it be the consignor or the consignee.

thanks for reply.

we provide transportation for non agricultural produce only.

further an agreement is made between us and client about the terms and conditions. 

there are two situations: we provide service by using

1.Owened Trucks 

2.hired trucks -  

in both the cases we raised invoice on client and he makes the payment to us. we pay to transporter's for trucks hired by us.  need clarity on following points:

a.- how and by whom service tax will be paid to Govt after 1st July'12.

b. should we pay service tax on trucks hired by us?

 

 

 

If the agreement between you and the transporter is of hiring of truck wherein the truck is used by your own and for the freight charges in turn you are raising the consignment note to your customer then service tax will be paid by the truck owner on the rent charges and by your customer on GTA service. But if the consignment note is raised by the transporter in your name then service tax will be paid by you under reverse charge @ 25% of the amount of freight paid to the transporter.

Dear Experts,

we are manufacturer and purchasing of raw material from otherstate supplier they are freight charges mentioned in the excise invoice and they are also raising separate invoice of service tax on freight charges  we are also paid the same 

my  quiery is whether can we availed the service tax or not

 

pls advise

R.Guru

 

If you want to avail the CENVAT credit it would be advisable to inform your supplier not to show freight charges in the excise invoice and bill for it separately. Also ask the supplier to put the consignor's name as your company name c/o the supplier and then you reimburse the amount and avail the credit on the same after paying tax on GTA service.