SERVICE TAX ON GTA

This query is : Resolved

Nilesh Jagtap (Querist)
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06 August 2009 HI WE ARE THE MAFG UNIT AT DAMAN & WE PAY SERVICE TAX ON GTA I WANT TO KNOW IN DETAILS ABOUT GTA KINDLY ADVICE THAT ON WHICH WEBSITE I GOT THE INFORMATION

I WANT TO KNOW THAT WHO IS ELIGIBLE & WHAT IS THE LIMIT FOR GTA.

srinivas

srinivas (Expert)
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06 August 2009 SERVICE TAX ONGOODS TRANSPORT AGENCY
Legislative History
Budget 1997 - ST on GTO was imposed (16/11/1997)
Budget 1998 - ST on GTO was exempted (49/98 dt 02/06/1998) & Omitted from 16/10/1998.
(Laghu Udyog Bharati v. Union of India 1998 (112) ELT 365 (SC))
Budget 2000 -Retrospect amendment.
Budget 2003 – Amendment – Section 71A
(Gujarat Ambuja Cements Ltd.v.UOI.(SC)
CCE, Meerut-II vs. L.H. Sugar factories ltd [2005] 2 STT 282 (SC)
Budget 2004 – ST on GTA. (Wef-01-01-2005)

Budget 2004 – ST on GTA.
In Budget 2004, the Service Tax was levied on Goods Transport Service.

Government Appointed a Committee under the Chairmanship of Shri S.K. Bhardwaj, Member, CBEC having member from All India Motor Transport Congress.

Based on the recommendation of the Committee the levy was made effective from 01/01/2005.
Goods Transport Agency
Definition:
“Goods transport agency” means any commercial concern which provides service in relation to transport of goods by road and issues consignment note, by whatever name called;

[ With effect from 01/05/2006 “Commercial concern” was changed as “any person”]

“Goods transport agency” means any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called;]

Goods carriage
“Goods carriage” has the meaning assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988)

(14) "goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;
Taxable service

To a customer, by a goods transport agency, in relation to transport of goods by road in a goods carriage
Person liable to pay Service Tax
in relation to taxable service provided by a goods transport agency, where the consignor or consignee of goods is,—

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any company formed or registered under] the Companies Act, 1956 (1 of 1956);

(c) any corporation established by or under any law;

(d) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India;

Person liable to pay Service Tax
(e) any co-operative society established by or under any law;

(f) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made there under; or

(g) any body corporate established, or a partnership firm registered, by or under any law,

any person who pays or is liable to pay freight either himself or through his agent for the transportation of such goods by road in a goods carriage;

In all other cases which do not belong to the specified cases (like where the service recipient is an individual or HUF or an unregistered partnership firm but being service receiver pays the freight), the goods transport agency providing the service is liable to discharge the statutory liability towards service tax.
Person to follow prescribed procedure for Service tax
As per Section 65 of Finance Act 1994, Assessee" means a person liable to pay the service tax and includes his agent;

Further Rule 2 (d) of Service Tax Rules defines "Person liable for paying service tax" and in the case of Goods Transport Agency it has specified category of persons.

In view of the legal provisions, the Specified Category of persons has to follow the prescribed procedure such as Registration, Payment of Service Tax and filing of return.
Exemptions
32/2004 Dt. 03/12/2004 - Abatement 75%. [As amended by 1/2006 ST Dt. 01/01/2006 – upto 28-02-2008]

33/2004 Dt. 03/12/2004 –Exempts transport of Fruits, Vegetables, Eggs or Milk

34/2004 Dt.03/12/2004- Exemption [ The gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand five hundred; or the gross amount charged on an individual consignment transported in a goods carriage does not exceed rupees seven hundred fifty.]
Budget 2008

Vide Notification no. 13/2008-ST, Dated 1-3-2008 the following condition is omitted.

Non availment of the CENVAT credit of duty on inputs or capital goods or the CENVAT credit of service tax on input services.