If a person provides service of transferring Soil from one place to another, whether it would be covered under service tax? If yes, under which head of Service it would be taxed?
12 Replies
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 November 2014
covered under transportation services........................
Shivangi Upadhyay
(CA Final Student)
(98 Points)
Replied 20 November 2014
So if the person do not issue any consignment note for the same whether the tax on reverse charge would be payable on the same?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 November 2014
u need to ckeck whther the person is covered by definition of gta or not then only u can decide further.
Shivangi Upadhyay
(CA Final Student)
(98 Points)
Replied 20 November 2014
GTA says that any person who provides service in relation to transport of goods by road and issues consignment note, by whatever name called is covered under GTA service. This person transfers soil in tractor and simply issues bill for the same.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 November 2014
so whether the main business is of transportation or not that u check for more clarification? is it the main business or wat pls claerify?
Manish K.Gandhi
(Superintendent)
(966 Points)
Replied 20 November 2014
First, it is to be ascertained whether Soil is goods or otherwise. Second, who are undertaking job i.e. in personal capilicty or as professional GTA? Third, purpose for activity to be ascertained. First point to be decided by value fetched by the soil. Second, any transportaton by road, not undertaken by GTA is not taxable. i.e. any tractor owner individual undertake job, it is not taxable. Third is purpose. If the purpose if to make any place worthy for any activity falls under Site Formation ...., the same is covered therein and taxable
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 November 2014
@ manish..i diasgree partially that gta is not liable to tax...it will be liable to pay service tax in case if it bears to pay the frieght charges.so it depends who is paying frieght in this case/
Shivangi Upadhyay
(CA Final Student)
(98 Points)
Replied 20 November 2014
1.Soil is not goods for the service receiver.
2.Work is also not related to business activities (For Shed etc.)
3.Transporter owns the tractors in which soil is being transported.
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 20 November 2014
if its not gta then no taxable service is provided and its basically for personally purpose only.
Manish K.Gandhi
(Superintendent)
(966 Points)
Replied 20 November 2014
in terms of Negative list Section 66D(p)(i) and considering FM Budget Speech in 2005, individual can not be taxed under GTA. I think issue was whether activity is taxable or otherwise. If taxable , liability can be decided under STR 2(1)(d)(B).
Ankush
(s)
(33 Points)
Replied 20 November 2014
Its clearly mentioned in service tax law if a person owns and drives the vehicle himself in order to provide the transport service will be exempted from service tax as it doesn't come in the purview of GTA.
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