Service tax catagory

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Anil Gyanchandani (Querist)
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13 January 2014 We are chemicals Trading Partnership firm. The Firm has its own fleet of Road Tankers for carrying Hazardous Chemicals. We always quote material delivered price upto consignee factory. Do we have to pay Service Tax? And what category of registration in service tax? Please suggest at the earliest.

Annu Agarwal

Annu Agarwal (Expert)
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14 January 2014 Sir as per my view,no service tax registration is required.Reason for reply is as there is no involvement of GTA.(Goods transport. Agency) .Also services by way of transportation of goods by road except by GTA or Courier agency is exempted by way of clause p of section 66D.The defination of GTA as provided by section 65B says it means any person providing service in relation to transportation of goods by road and issues consignment note whereas in your case you are doing trading activity and the transportation facility provided by you is ancilliary to your business activity.therefore no service tax .

Anil Gyanchandani

Anil Gyanchandani (Querist)
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14 January 2014 Respected Ms Annu Agarwal, your answer is correct. Now we are not GTA, but we trade in Excise Duty Paid Goods & are registered under dealer category with Excise. At the beginning, there were conditions to register with Service Tax Department under "Any Dealer Registered with Excise is liable to pay Service Tax". We are filing NIL Service Returns under GTA.

Now Please advice us " whether we should surrender registration under GTA & get any other registration with Service Tax Dept?

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Annu Agarwal

Annu Agarwal (Expert)
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14 January 2014 Sir,If you are not liable to pay service tax under GTA then you may surrender your registration.Please check as you are a Excise Dealer,you may be required to pay service tax under reverse charge on theinward freight also,if the goods were transported to you using the service of GTA and the freight was paid by you.If even on inward freight ,no servic etax liabilit arises on you then you may surrender your registration.

Also,youare not providing any taxable serviceyou are not required to register under service tax.Trading of goods is a service specified in NEGATIVE LIST under section 66D.