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GTA freigh + loading unloading very interesting qus.

piyush (income tax consultant) (19 Points)

12 July 2007

my cline is a GTA charging to his clint freigh + Loading & Unloading charges like 12000 freight + 5000 loading & unloading charges where ST is paid on 12000/- or 17000/- it's very argent plz help me

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6 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 13 July 2007

Dear Piyush, Loading and Unloading is integral part of the Transportation job. Service Tax should be charged on the whole amount @ 12.36%, subject to abetment of 75%, if available. The tax is payable by the consigner or consignee in specified situations. If your client does not charge Service Tax on Loading and Unloading Charges, the department will collect service tax on this portion under the catagory of "Cargo Handling Service" @ 12.36%. This tax will be paid by the Service Provider. As desecting or using different nomencalture does not alter the substance of the service, whole amount is exligible to tax under GTA - in my humble opinion.

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(Guest)

I have some queary regarding cenvat credit of service tax.

CA.Amit Mehta (Professional) (254 Points)
Replied 11 November 2009

17000, if both are combine in one bill ,if there is sepret bill raised for freight than service receiver has to pay s.t. and not service provider. and if sepret bill for freight raised than no s.t. on 12000 s.t. on only 5000.

Satish (CA Final Student) (479 Points)
Replied 11 November 2009

When loading & unloading charges are distinctly charged in the bill, they do not form part of the transportation cost. To form part & parcel of transportation cost, the transportation charges should not be segregated in two parts as illustrated by piyush in his thread. The example given by piyush clearly indicates 2 services being provided viz. Transportation service & Cargo handling service. Hence, the service tax will be payable for two different services - 10.30% on (25% of 12000) & 10.30% on 5000/- (under cargo handling service)

Praveen ( Manager Accounts) (130 Points)
Replied 16 August 2012

Dear Sir, We are paying Loading & Unloading charges daily by cash to outsider worker, Is service tax applicable on it ? Please confirm me /

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U S Sharma (glidor@gmail.com) (21056 Points)
Replied 17 August 2012

Originally posted by : Praveen
	Dear Sir, We are paying Loading & Unloading charges daily by cash to outsider worker, Is service tax applicable on it ? Please confirm me /

paid to outside worker does not consist the definition of GTA,

however depending of the person who provides the workers and collects payment may invite ST as manpower recruitment services,

while doing such trade practice, please maintain caution, as the same can be booked as "default" undeer ESI and PF rules, and these workers may be clubbed with your payroll.

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