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Goods transport agency services

saurav (abc) (43 Points)

26 June 2012

Sir

I have the following queries regarding Service Tax on GTA services:-

1. What is the exemption limit for:

a) Consignor

b) Consignee

c) Transporter

d) Proprietorship firm

e) Partnership firm

f) Company

2. If the Service Tax is paid on freight to the transporter, can Modvat be taken by ED registered unit ?

3. If service of carriage inward is provided by individual and for which no Consignment Note/ L.R./ Builty is

issued, whether S.T. is payable by ED registered dealer ?

Kindly help me regarding the above said queries at the earliest.

Thanks & Regards,

Saurav

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2 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 26 June 2012

Exemption limit remains the same for everyone liable to pay service tax i.e. Rs 10 Lakhs.

Service Tax credit in case of GTA can be claimed only when it is paid by virtue of reverse charge mechanism. Whosoever pays the tax shall be eligible to claim credit of the same subject to the same being a consignee paying freight inwards. On outward freight, it is upto the place of removal.

If no Consignment Note is issued, it doesnot fall under the category of GTA. Hence, there is no liability of the freight payer to pay tax i.e. no reverse charge mechanism is attracted.

Regards

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