Nishtha Narielwala (Tax Consultant) (131 Points)
04 February 2013Hi,
Is service tax payable on GTA services availed for providing services which are exempt?
Eg: If a contractor avails GTA services to receive sand, bricks etc., for executing a construction service that is exempt, is he liable to pay ST on the GTA services availed by him?
Kindly help!!
Thank You!!
V.Rajalakshmi
(proprietrix)
(65 Points)
Replied 05 February 2013
Dear Nishtha
Kindly refer education guide issued by St, GTA is exempt only in the following circumstances
21. Services provided by a goods transport agency by way of transportation of -
(a) fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
(b) goods where gross amount charged for the transportation of goods on a
consignment transported in a single goods carriage does not exceed one
thousand five hundred rupees; or
(c) goods, where gross amount charged for transportation of all such goods for a
single consignee in the goods carriage does not exceed rupees seven hundred
fifty;
suraj gahlout
(student)
(47 Points)
Replied 05 February 2013
YES, SERVICE TAX IS PAYABLE. AS MR. V. RAJALAXMI EXPLAINED ABOVE.
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 06 February 2013
Dear Nishtha,
Please note that the liability to pay service tax on GTA is shifted on the service receiver, vide notification no. 30/2012 ONLY if the person liable to pay freight is:-
Nishtha Narielwala
(Tax Consultant)
(131 Points)
Replied 11 February 2013
Thank u all !!
Mr. Manoj Agarwal Sir,
In case the assessee is an individual and will be bearing the freight expenses will he be liable to pay ST on the GTA services availed?
Kindly help !
Thank You !!
CAclubindia
