29 June 2015
ABC Pvt Ltd company is having Transportation and custom clearance business. The goods transported are basically agricultural goods and fruits i.e Onions, potatoes, mangoes, etc
The truck and Trailers for transport are owned by the directors in their individual name.
ABC Pvt Ltd is Paying a fixed amount on monthly basis to the directors for using theirs Trucks & trailers in the form of Hiring Charges.
and the ABC pvt ltd charges to thier clients in the form of Transportation RS.XXX Agency Charges Rs.XXX
kindly Advice whether the service tax should be charged only on Agency charges @14% or it should also be charged for transporattion charges in the Form of GTA Services
29 June 2015
Since, goods being transported are agricultural produce, fruits etc., the service of GTA shall be exempt from service tax. Service tax to be charges only on the agency charges based on the facts provided by you.
CAclubindia
