An Individual (proprietory firm)engaged in supply of goods. He purchases minerals, and after screening the same Sale FOR customer place. Freight is paid and born by the proprietor. He is not registered with Excise, Factories act etc. Whether service tax liabilities can arise to him ?
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Service tax on transportation
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Dear Bimal,
Individual proprietor (consignor) will not be liable to pay the service tax on the said Goods Transport Agency under Reverse Charge Mechanism as he is not covered in the list of the Specified person (which includes Registered Excise Dealer, Registered Partnership firm, Body corporate .....etc)
Before Central Government vide Notification No. 36/2012-ST dated 20th June, 2012 has amended Rule 2(1)(d) of Service Tax Rules, 1994, the same situation would have been reversed if the consignee was any of the specified person . (in that case that individual has to pay service tax under reverse charge as freight exp are to be borne by him)
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