05 December 2009
Hi, I would like to know whether a proprietorship concern which pays transportation charges to raod transporters is liable to pay service tax or not under rule 2(1)(d) of service tax.
05 December 2009
If either consignor or consignee is the specified person, then whoever is paying the transportation charges is liable to discharge the service tax liability. In case of proprietorship, both consignor and consignee should be proprietorship concerns in which case the liability is on the GTA provided he exceeds 10 L per annum. However, even if both consignor or consignee are proprietorships, none of them should be another category of specified person, eg. Registered under the factories act. or Central Excise (CENVAT Invoice issuers).
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