Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2012 My question is in case consignment note is not issued by goods transport agency then whether it is compulsory for consignor or consignee ( who pay freight charges ) to pay service tax & if while making payment of service tax service tax registration no is compulsorily filled by consignor or consignee ( who pay freight ) ?

CA Suresh Jain

CA Suresh Jain (Expert)
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09 September 2012 The service of transportation of goods by road is taxable only if it is provided by a goods transport agency or provided by a courier agency.

transport of goods by GTA is also exempted in following cases :-

transport of fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
• transport of goods where gross amount charged on a consignment transported in a single goods
carriage does not exceed one thousand five hundred rupees; or
• transport of goods where gross amount charged for transportation of all such goods for a single
consignee in the goods carriage does not exceed rupees seven hundred fifty.

"goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name. Since in this case no Consignment note is issued it is not a service provided by goods transport agency.

But, it is a service for delivery of goods from door-to-door it fall under courier agency service and taxable accordingly. RCM is not applicable.

"goods transport agency" means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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10 September 2012 Even if the consignment note is not issued, the service receiver has to pay 25% of the freight amount valuing above Rs. 750/-.

Service provider(GTA) need not be a registered dealer for that.

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