28 February 2008
Sir, we r having some transport contracts. In such contracts, contractor was asked to dump meterial form one place to another place at an avg.distance of 5KM.For this, monthly payments will be made to contractor based on daily trip sheets.Further no conignment notes will be issued bythe contractor. In this case, consignor and consignee will be the same person.
Are these type of contracts also covered under GTA Services and liable to Service Tax?
28 February 2008
Yes If the daily trip exceeds 1500/- per trip then service tax will be applicable but if the trip is below 1500/- then exempt
Consignment note by whatever name called, will be treated as consignment note. In t his case the trip sheet will be considered as consignment note but it should include, vehicle number, weight, place of delivery from to and so on
If transporter are not complince of Rule 4A, He is no fall under the GTA service.
If transporter raised invoice on trip bases, He is not fall under the GTA category.
Please refer Rule 4A
rule 4A, “consignment note” means a document, issued by a goods transport agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination, person liable for paying service tax whether consignor, consignee or the goods transport agency.
CAclubindia
