Dear Sirs
My client is (partner ship firm) manufacturer of ready mix concrete. They own some 20 ready mix concrete vehicles for transporting those concrete. Client is invoice the concrete value only with excise and vat percentage. And also separately billed for transport charges for delivering the concrete at site. (Those peoples are end users). Whether any service tax liability is attracted to this transportation income. Please clarify the same.
S.Mohan
The transportation income is liable to service tax. The client will be covered under the definition of GTA for service tax purpose and reverse charge mechanism will be applicable. Liability will depend upon nature of service receiver. If the service receiver 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;
(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;
Such service receiver will be liable to pay service tax. In all other cases the client is required to remit the tax liability. The client can claim SSI exemption as per Notification no. 33/2012-ST, dated 20-6-2012.
CAclubindia
