GTA -Service Tax on Freight paid

This query is : Resolved

P.Saravanan (Querist)
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29 June 2008

Dear Friends,

Please clarify

1.Is it service tax on freight is it with drawn as per notification 29/2008 dt 26.06.08.

If it so, the recipient of the serivce need not pay service tax on carriage inward as well as outward ?

Please clairfy

Ajay Gumbar

Ajay Gumbar (Expert)
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30 June 2008 No,

Service tax on transportion of goods through goods carriage by road (commonly known as GTA service) is taxable to tax as earlier. The liability to pay service tax is on service reciepient (as was earlier)

Notification 29/2008 provides exemption on any person who provides service of supply of tangible asset being goods carriage( like truck, lorries etc.) to Goods Transport Agent for use in GTA service.

Regards,

Ajay Gumbar.

P.Saravanan

P.Saravanan (Querist)
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01 July 2008 Thanks

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