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Service tax on transport services

vinoth (B.Com) (52 Points)

22 May 2013

Dear all

We are having following queries on Service Tax

We have started a firm and we are providing only "Transport service".

Are we needed to register under service tax, charge Service tax and pay the same to Government.?

For the first year how we can justify the treshold limit of Rs.10lacs.?

With regards

S.Vinoth

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17 Replies

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 22 May 2013

After the ssi exemption you will pay the service tax.

vinoth (B.Com) (52 Points)
Replied 22 May 2013

what is SSI Exemption?

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 22 May 2013

upto the 10 lacks no need to pay service tax.

vinoth (B.Com) (52 Points)
Replied 22 May 2013

Is there any notification that the service provider on "Transport services" has to pay service tax. if the provider is a firm

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 22 May 2013

Notification No. 35/2004-Service Tax, dated 3rd December, 2004 prescribes that the person making payment towards freight would be liable to pay the service tax, in case the consignor or the consignee of the goods transported in one of the following,-

(i) Factory registered under or governed by the Factories Act;

(ii) Company established by or under the Companies Act;

(iii) Corporation established by or under any law;

(iv) Society registered under Societies Registration Act or similar law; (v) Co-operative society established by or under any law;

(vi) Dealer of excisable goods, registered under the Central Excise Law; or

(vii) Any body corporate established, or a partnership firm registered, by or under any law

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vinoth (B.Com) (52 Points)
Replied 22 May 2013

so the person who is paying for the service has to pay service tax . The service provider need not pay service tax. service receiver has to pay. Correct???

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 22 May 2013

Person who pays transport charges... .

Sushma Mevacha (Executive) (394 Points)
Replied 23 May 2013

As per the Notification No. 30/2012-Service Tax Dated : 20^th June, 2012,

I. The taxable services,—

(A) (i) provided or agreed to be provided by an insurance agent to any person carrying on the insurance business;

(ii) provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the person liable to pay freight is,—

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e) any body corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons:

Further, Notification 33/2012 dt. 20-06-2012 provides the Exemption for Thresold limit of Rs. 10 Lac.

Vinoth (Assistant Manager Finance) (166 Points)
Replied 23 May 2013

If you provide transport service to any registered companies/private concerns & if they are paying service tax on inward freight, you no need to pay service tax

vinoth (B.Com) (52 Points)
Replied 23 May 2013

Dear Sir

If we are rendering service to Individual and Firm, Are we have to pay Service tax....

With regards

S.Vinoth

Nirav Worah (CHARTERED ACCOUNTANT) (396 Points)
Replied 24 May 2013

If the person liable to pay freight is any of the specified category then the person making the payment of freight is liable to make payment of service tax,—

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(c) any co-operative society established by or under any law; (

d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e) any body corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons:

In all other cases the GTA is liable to pay service tax (cases where the person liable to pay freight is an individual). However basisc exemption upto 10 lakhs is available.

M. A. Quadiri (Professor) (64 Points)
Replied 26 December 2013

We are providing GTA Services From Year 2011-12 to till date , we have only one client , they are corporate assesses . they have paid for our services after deducting the service tax . our receipt is as under 2011-12 : Rs. 3,50 000/- 2012-13 Rs. 4,00,000 /- 2013-14 About Rs. 5,00,000/- we are resisted under service tax , and we never filed our return , We have never provided services to non corporate assasee. Please Guide us .. also let me know that , whether we shall eligible for VCES.

raghavender upadhyay (B.Com, LLB, CA FINAL) (331 Points)
Replied 26 December 2013

under reverse charge mechanism for GTA services, Corporate assesses are liable to pay service tax. You have to file nil returns. But "Persons who are not liable to pay service tax (because of an exemption including turnover based exemption & Not required as per Any amendement under law), are not required to file ST-3 return (Circular No.97/8/07-ST dated August 23, 2007)

aman (accountant) (21 Points)
Replied 15 June 2014

Dear all

I am a small fabric trader, i have a properietorship firm, am i needed to register under service tax, or pay Service tax on transportation charges. is there any limit for service receiver?

regd

aman