Transportation of goods by road

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2012 whether transporter have to registered in service tax , if yes, whether there is any abatement available to transporter

Suresh Mittal

Suresh Mittal (Expert)
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25 July 2012 The liability under reverse charge for transportation of goods is only for specified persons. For SR other than Specified persons, the liability is on the SP, so the transporter are required to get service tax registration.
Further, the transporter can avail abatement upto75% of of service tax liability or say they need to make service tax payment @ 3.09% instead of 12.36%, but on condition that they will not avail CENVAT credit.