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Servuce Tax on Transportation

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subham tekariwal

nil

35 Points Posted on 02 November 2021

Assessee is a agent ( no consignment note is issued nor any truck is owned by the assessee) providing transportation service for transportation of coal from Minning area to port for export.
1) Will the assessee come under the defination of GTA.
2) is service tax applicable.
3) Who is liable to pay service tax : a)The congineer/consignee (as both of them are same person),
b) the truch owner
c)the assessee i.e agent

Replies (6)

Quick Summary

This discussion explores whether an agent facilitating coal transportation from mining areas to ports qualifies as a Goods Transport Agency (GTA) for service tax purposes. It questions the applicability of service tax and clarifies who is liable to pay it – the consignor/consignee, the truck owner, or the agent. The conversation references relevant notifications regarding GTA definitions and GST rates to determine service tax obligations.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 02 November 2021

As per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017, “goods transport agency” or GTA means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called.21-Oct-2021

Any other goods: 5% No ITC OR 12% with ITC

Service by a GTA: GST rate

Hiring out vehicle to a GTA: 0%

in cases where the service of GTA is availed by the specified categories of persons in the taxable territory, the recipients who avail such services are the ones liable to pay GST and not the supplier of services unless the GTA opts for collecting and paying taxes @ 12% (6% CGST + 6% SGST).