Service Tax on transport of petroleum products

Service Tax on transport of petroleum products


TIOL-DDT 305
17 02 2006
Friday

Transportation of petroleum products are undertaken by tank- truck / tanker operators, who enter into long term contracts with the Oil Marketing Companies ( OMCs ), whereby the vehicles are made available and operated for the use of transport of petroleum products of OMCs for a freight rate fixed on the basis of tendering procedure. Are they liable to Service Tax?

Board has clarified the position to the Petroleum Ministry that transport of petroleum products, fall within the purview of the taxable service provided by a goods transport agency and is therefore chargeable to service tax.

Replies (5)
yes obviously ......they are liable for service tax........and all " consignment note " provisions are applicable to them too...

Petroleum and gasoline service station financing provides help to the gas station owners to purchase various facilities for their stations. Pumping equipments and supplies are the most important factors for any gas station.

Transport of Petroelum is a taxable service provided by the Goods agency...

Petroleum and gasoline service station financing provides help to the gas station owners to purchase various facilities for their stations. Pumping equipments and supplies are the most important factors for any gas station.

Transport of Petroelum is a taxable service provided by the Goods agency...

Carriage of petroleum goods are chargeable under GTA and the Service Receiver (Oil Companies) need to pay ST on the GTA. At present it attracts tax @ 12.36% after allowing abatement of 75% i.e. Oil companies need to pay tax on Rs. 25 @ 12.36% (If bill is Rs. 100-abatement of Rs. 75).

Dear All,

Transport of petroluem products by tank truck, as it falls within the perview of GTA services and is therefore taxable.

Rates of freight fixed by OMCs are based on round the trip( incl. return trip of tank truck with empty). Tender/contract entered with GTA by OMC's, is silent of above aspects. While returning with empty truck, there is no carrying of good. will it form part of in relation to service  of GTA and accordingly needs to pay Service tax on round the trip basis.

Is it need of paying service tax on return with empty tank truck for other loads.. if it so, whether retrun trip will elegible for cenvat .....

 

Thanking you, in advance...

 

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