Taxability of payment for bringing vehicles by drivers -gta

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rakesh tiwari (Querist)
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13 May 2014 Good Morning experts,
My concern is a Comm. Vehicle dealership pvt. ltd. company having office/showroom in jabalpur(MP).
Our Principal leaves vehicles at indore and our transporter engages his drivers to bring vehicles by driving the vehicle from indore to jabalpur by road.
Is this service liable for ST under GTA?

When there is no carriage used by transporter for bringing vehicles to jabalpur.

And if we are not covered under GTA then are we covered under Man power recruitment service?

Annu Agarwal

Annu Agarwal (Expert)
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13 May 2014 As per my view,you are right in contending that as there is no carriage involved and no GTA service availed the same cannot be classified as covered under GTA.
The sevice of driver provided by the transporter falls under manpower supply service and service tax shall be levied @12.36%.
Please note that if the transporter providing the driver is a individual,HUF or a partnership firm than reverse charge shall apply as you are a Body corporate.

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