SERVICE TAX ON TRANSPORT OF GOODS BY ROAD

This query is : Resolved

prasad mohite (Querist)
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07 October 2009
We are transport agent and transport the goods by road on behalf of consignor or consignee. our turnover is more than 20 lacs.

now i want to know we are liable to register for service tax no. and charge service tax on our billing?

or

is it exempt 29/2008-Service Tax, dated 26.06.2008.

sunny bansal

sunny bansal (Expert)
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07 October 2009 AS PER THE PROVISION OF FINANCE ACT 1994,NO REGISTRATION & PAYMENT IS REQUIRED FOR SERVICE TAX UPTO THE TURNOVER OF RS.900000.00 & 1000000.00 RESPECTIVELY . AS YOUR TURNOVER EXCEEDS RS.900000.00/1000000.00 BOTH ,YOU ARE REQUIRED TO GET REGISTRATION UNDER SERVICE TAX & MAKE PAYMENT OF THE SAME TO AVOID ANY FUTURE PENALTY. AS SERVICE IS EXEMPTED FROM THE TAX ,THEN IT IS NOT REQUIRED.

ANIL JANGID

ANIL JANGID (Expert)
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07 October 2009 No need service tex registeratin, exemption available on transporter.

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K V Subba Rao

K V Subba Rao (Expert)
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07 October 2009 Notification No: 29/2008 referred by you relates to taxabability of service of "supply of a goods carriage" but not "transport of goods". These are two different types of services.

To put it simply, understand that "supply of a goods carriage" means hiring of vehicle for transporting goods

The first one, that is, "supply of a goods carriage" is exempt but the second one, that is, "transport of goods" is liable for service tax.

With regard to "transport of goods", in a few cases such as Consignor or Consignee being a Company or Firm etc only, service tax is not payable by the Goods Transport Agency.

You may be transporting goods for other customers also in which case you, being goods transporter are liable to pay service tax for which you have to get yourself registered.

I suggest you visit http://www.dateyvs.com/service_tax.htm

(I did till recently work for a GTA)