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Mining services

09 November 2012

SIR, WE (A COAL MINING COMPANY) HIRE THE SERVICES RENDERED BY THE TRANSPORTERS / TRUCK OPERATORS (BODY CORPORATE /FIRMS /INDIVIDUAL/AOP/HUFS) FOR TRANSPORTING COAL/SAND/CAPITAL GOODS/INPUT MATERIALS FROM ONE COLLIERY TO ANOTHER/ STORE TO COLLIERY / RIVER BED TO BUNKER WITHIN THE VAST MINING AREA OPERATED UPON BY OUR COAL MINING COMPANY DOES THIS KIND OF SERVICE FALL WITHIN THE PURVIEW OF :

1.MINING SERVICES ? [REF. CBEC LETTER F.NO. 232/2/2006-CX.4 DATED 12/11/2207]

2.GTA SERVICES ?

[WHEN CONSIGNOR & CONSIGNEE ARE SAME. NO CONSIGNMENT NOTE BUT CHALLANS DETAILING THE POINT OF ISSUE & DESTINATION AND DESCRIPTION/QTY OF GOODS] BASICALLY DOES NOT INVOLVE ANY ROADWAYS TRANSPORT.

3.EXEMPTED AS PER NEGATIVE LIST ? [AS SERVICES BY TRANSPORTERS/TRUCK OPERATORS SPECIFIED IN NEGATIVE LIST]

KINDLY GIVE YOUR VALUED OPINION. REGARDS

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4 Replies

gbalakrishnan (owner) (1373 Points)
Replied 10 November 2012

what opinion you want sir?

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 10 November 2012

There are decisions that service provided by individual truck operators is not GTA service and hence no service tax liability. Under new tax regime, this falls under negative list.

gbalakrishnan (owner) (1373 Points)
Replied 10 November 2012

dear mr.Unni,

when it is now under negative list, it is some policy decision or some kind of an executive decision.

Before moving a court of competent jurisdiction u need to issue a legal notice to the relevant authority adducing your reasons why it should not be in negative list and why it should be in positive list.

see previously Advocates were not brought under negative list but now is brought, now soon Advocates may issue legal Notice why Advocates need to be under positive list as clients are not willing to bear the service tax as clients say it is to be borne by advocates besides this service tax on Advocaets makes the clients avoid advocates and they settle with touts-advocates who take the jobs on cash terms and give cash to advocates on records and in fact tax administration increasestax avoidance by dubious means. So possibly Chidambaram as finance minister may restore Advocate to positive list so Advocates need not pay service tax.

Always remember friend one thing government finance bills really do not move on any senible perceptions as inance minister more revenue to cut down his fiscl deficit so he goes berserk like Pranab did.

So you need to work out an appeal by the corporate through their industry or other association should move a representation yes your association secretary to contact other industry associations as every industry uses trucks to transport their goods/merchandice as also transport industry associations to make their own representations as also take their copy of representation to strengthen your mining industry association representation that way plead to inance minister while issuing a sec 80 notice to central excise Board of taxes to reinforce the idea! regards.. adv dr g balakrisnan independent director helping corporate affairs of public limited textile mills .