Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

captive plant transportation

CA. Raviprakash M.S (Chartered Accountant) (154 Points)

19 September 2007

Dear Sir / Friends

My client is a manufactuere of writing papers. the compnay is having captive plantations, to obtain pulpwood which is used as rawmaterial. Private contractors is used for extraction and transportation of pulpwood from captive plantation. Whether service tax is applicable in this case, if yes tax to be paid by the contractors or by the company pl. clarify

Reply
Follow
Share

1 Replies

saran kumar (student) (145 Points)
Replied 21 September 2007

yes, service tax is applicable in this case. Because for transportation is a taxable service. But in case of transport service even you gave a contract to some other party, you need to pay the service tax on gross taxable amount. As per provision, in relation of taxable service povided by transport agent for transport goods by road, the person who pays or liable to pay fright should pay service tax, if the consignee or consginer falls under any of the following seven categories. 1.a factory. 2.a company. 3.a corporation 4.a society 5.a cooperative society 6.a registered dealer of exisable goods. 7.a body corporate or a partnership firm. Thanx & Regards, Saran Kumar