Service Tax (GTA)

This query is : Resolved

Guest

Guest (Querist)

17 November 2008 Hello Experts

I am Confused about following Notification;

Notification No. 34/2004 :says ST will not be paid if
(i)the gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand five hundred; or
(ii)the gross amount charged on an individual consignment transported in a goods carriage does not exceed rupees seven hundred fifty

Please advise me in following case keeping in mind above (ii);
1) Consignment Note No.: 1 for Rs. 235/- dtd 1/4/2008 (Truck No. ABC)
ii)CN : 2 for Rs. 350/- & CN No. 4 for Rs. 500/- both r Dtd 2.4.08 (Truck:ABC for both CN)
ii)CN 3 & 4 for Rs. 355 & 555 dtd 3.4.08 & 4.4.08 but delivered in same truck on 4.4.08(Truck no. ABC)

As per my Belief service tax will be liable as follows;
i)No ST to be paid
ii) Diff. CN hence no ST to be paid
iii) Same as (ii)

Please help me by providing your valued opinion..

Further one of the expert has given his valued opinion that you can not clarify this thing to office in future so please use your mind but i want exact answer for the above situation.

Thanks
CA Rohit

Shyam Lal Naik

Shyam Lal Naik (Expert)
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17 November 2008 Exemption limit of Rs. 1500/- is applicable in case of full truck load consignment. I mean, it carries goods for one consignee only.

In case the goods carriage carries consignments for more than one consibnor/consignee, as the case may be, the limit of Rs. 750/- is applicable.

Indivisual consignment for the purpose means all goods transported in a goods carriage for a consignee. Thus i) is exempt, and ii) and iii) are taxable.