Transport of goods by road

This query is : Resolved

hemlata p. soni (Querist)
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16 May 2012 my cline has business of transport of goods by road of sand, kapchi, qoil etc. whether he has require to take service tax registration no. or not. my client is an individual person & made sale to co. & not to inidividual

please give answer on urgent basis

CA. RICHI SAXENA

CA. RICHI SAXENA (Expert)
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16 May 2012 Small service providers whose total value of services provided (including exempt and non-taxable services) is less than Rs 10 lakhs in previous year are not required to pay service tax in current financial year till they reach turnover of Rs 10 lakhs. Clubbing provisions can apply. Registration is required if turnover exceeds Rs 9 lakhs per annum.

“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.
(Section 65(50b) of Finance Act, 1994 as amended)
“Taxable Service” means any service provided or to be provided to any person, by a goods transport agency, in relation to transport of goods by road in a goods carriage.
(Section 65 (105) (zzp) of Finance Act, 1994 as amended)
So get your client registered and start paying service tax if he falls in the above mentioned provisions.