GTA Contractor

 

One of my client has entered in to an Transporting agreement with Coal mining company which reads as under

   

“The Ex Serviceman Transport Company xyz Coal Carriers Private Limited should procure its own Tipping Trucks as per present requirement with provision to deploy more Tipping Trucks on the sole discretion of management for Transportation of Coal from the companies various quarries/faces/Bunkers/Surface/stock/CHPs/Feeder Breakers as per directives of the Chief general manager/General manager of the area on the terms and condition mentioned hereunder and the aforesaid Ex-Serviceman Transport companies Having agreed to the terms and condition offered to them.” 

 

The mining company is paying GTA on transport charges availing abatement of 75% and asked our client to give declaration that we shall not avail benefit of CENVAT credit in any account.

 

Now the case is : 

 

My Client xyz has arranged some trucks from Ex service men and deployed them in performance of above work (Main contract). 

 

however my client is neither paying any tax nor taking credit of any CENVAT whereas 

Deapartment is asking us to pay tax as GTA  on amount paid to individual truck owners who actually performed the work ?

 

there is clearly doble taxation on single service and coal company is not able to take credit of tax which has been asked to pay by us,  as they are taking benefit of abatement.

 

how can we avoid paying double tax????? 

 

Thanks and regards

 CA SAMEER SINGH