KINDLY LET ME KNOW THE IMPLICATION OF SERVICE TAX LAWS IN RESPECT OF THE FOLLOWING SERVICE:
AS A BODY CORPORATE , IN COAL MINING INDUSTRY, WE ARE ENTERING INTO TRANSPORTATION CONTRACT WITH DIFFERENT KIND OF CONTRACTORS ( INDIVIDUAL/ FIRM/ BODY CORPORATE ETC) IN ORDER TO TRANSPORT INPUT RAW MATERIALS/ COAL / SAND/ CAPITAL GOODS BETWEEN DIFFERENT UNITS (COLLIERIES / MINES/ STORES / MAGAZINES / STOCKYARD/ LOADING POINT / COAL DEPO / RAILWAY SIDING / RIVER BED TO SAND BUNKERS ETC ) LOCATED IN THE VAST MINING AREA OWNED BY US.
THE GOODS ARE TRANSPORTED MAINLY THROUGH THE ROADS BELONGING TO THE COMPANY WITHIN THE MINING AREA. THE CONSIGNOR AND CONSIGNEE ARE THE SAME PERSONS i.e. THE COMPANY ITSELF. NO CONSIGNMENT NOTES ARE ISSUED ( as intended for GTAs) . ONLY 'CHALLANS' ARE ISSUED BY THE TRANSFEROR UNIT IN FAVOUR OF THE TRANSFEREE UNIT INDICATING PARTICULARS OF THE GOODS ( i.e quality/ weight / grades of coal, descripttion of the capital goods / input materials etc) SO TRANSPORTED .
QUERY :
1.DOES THE ABOVE SERVICE AVAILED BY US COME WITHIN THE DEFINITION OF GTA SERVICES?
2.ISN'T THE SERVICE ALREADY THERE IN THE NEGATIVE LIST? AND SPECIFICALLY EXEMPTED , AS DECLARED IN THE F.M.S SPEECH?
3.IF THE SERVICE (BEING IN THE NEGATIVE LIST), IS EXEMPTED - THEN ARE WE SUPPOSED TO PAY SERVICE TAX AS A SERVICE RECEIVER ( UNDER R.C.M ) ?
KINDLY EXPLAIN THE POSITION.
REGARDS
S.MITTRA
CAclubindia
