Transport sector service tax

I purchase foodgrains from outside of state. I pay freight and transportation approx. 2 lacs per year. Each payment is approx. 15000/-. Mine is a proprietorship concern. Is there any threshold for paying service tax on freight. Can my transport agency collect service tax from me?

Replies (5)

NO.GTA(GOODS TRANSPORT AGENCY) TRANSPORTER HAS NO RIGHT TO COLLECT SERVICE TAX.

No service tax liability arises if you are getting the food grains transported, as per notification no.25/2012-ST dated 20.06.2012;

Originally posted by : CA PRAVEEN SINGH

NO.GTA(GOODS TRANSPORT AGENCY) TRANSPORTER HAS NO RIGHT TO COLLECT SERVICE TAX.

I beg to differ that the GTA cannot charge Service Tax. If the recipient is not liable to pay service tax under reverse charge mechanism vide notification no.30/2012-ST, then the service tax liability is required to be discharged by the GTA.

The government exempted transportation of essential goods like foodgrains, fertilisers and petro products from service tax.

 

Agree with Mr chiradeep

services for agriculture and related activities are included in negative list hence no service tax

 

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