service tax on Transporters

This query is : Resolved 

23 April 2009 What is position after Notification 29/2008 26.6.2008 & notification 1/2009 dt. 05.01.2009

If A owner of Vehicles gives to B GTA ( both Registered in Service Tax) to use for a customer (other than specified customers like ltd co., pvt.ltd, partnership firm.

What is liability of A To Charge service tax?

Should B also charge service tax?

if B also owns his vehicles and hires it to customer or Another GTA then what is liability to service tax?

Thansks
Narinder



25 April 2009 If A rents the vehicle without effectively transferring the right of possession or control to B, then, it cannot charge service tax as exempted by Notification 29/2008. But B should collect service tax from it's customers for providing GTA, if they providing the service.

Regarding renting of vehicles by one GTA to another, the same logic should apply.



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