Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Difference between GTA Service and Courier Service

Ram kr. (Buisness) (883 Points)

28 August 2009

Dear Experts,

Is Service Tax rule applicable on GTA Service and Courier Service are same or difference.

Thanks

Reply
Follow
Share

5 Replies

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 28 August 2009

PLEASE SEE THE ACT 65 AND THE DEFINATION OF THE BOTH

"courier agency" means a any person engaged in the door-to-door transportation of time –sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles;

“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

Upgrade to CAclubindia Pro. Subscribe Now!

Ram kr. (Buisness) (883 Points)
Replied 30 August 2009

Dear Experts,

Can we pay service tax 25% of Bill Value on courier service like GTA service and take credit.

Thanks

EKALABYA TALUKDAR (SERVICE TAX CONSULTANT) (666 Points)
Replied 30 August 2009

“Goods Transport Agency” is getting a benifit of abatement of 75%, That means if the Transportation charge is Rs 1000.00

( Rs 1000.00 x 75% = 750.00, Resedue is Rs 250.00) the transporter will charge SERVICE TAX only on Rs 250.00. But COURER AGENCY is not entatiled for any abatement. The service tax will be calculated on whole Rs1000.00

1 Like