If any individual person is doing the transportation business then service tax is not applicable( In reverse charge mechanism) But if any company or firm is conducting the same business than the service tax is applicable..
It's not the matter that the individual transporter take that vehicles on rent or not. In case of Individual the liability of service tax arise only when he cross the exemption limit..
He will be treated as a GTA providing services in respect of transportation of goods and will be taxable if issues consignment note. But as it covers under RCM so service reciepient has to bear service tax.
Service tax liability will be only if service provided to a business entity who is not:
1. a factory registered under factory act
2. registered society/co operative society
3. dealer registered under excise
4. partnership firm
5. Registered company.
The negative list lays down that transportation of goods is not liable except for that done by the GTA or Courier. If one is a truck owner or a truck operator [ takes some on hire] that would not make them the GTA. Transportation of goods from mine head to foothill, for a factory daily trip to suppliers / job workers and back. These typeof transactions are NOT GTA.
GTA are agents who issue consignment note.
Unfortunately the CBEC has not defined who is a GTA and who is GTO maybe on purpose for the past 13 years.
only GTA liable GTO not liable.
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