TDS relate to transport

Scope :

The service provided by a Goods Transport Agency (GTA) in relation to transport of goods by road is covered under this category.

'Goods Transport Agency' means any person who provides service in relation to goods transport by road and who issues a consignment note.

'Consignment Note' means a document issued by a Goods Transport Agency against the receipt of goods for the purpose of transport of goods by road in a goods carriage, which is serially numbered, and contains the name of the consignor and consignee, registration number of the goods carriage in which the goods are transported, details of the goods transported, details of the place of origin and destination and the person liable for payment of Service Tax, whether consignor or consignee or the Goods Transport Agency.

Person liable to pay Service Tax under GTA Service :

In relation to taxable service provided by a Goods Transport Agency, any person who pays or is liable to pay freight either himself or through his agent would be liable to pay the Service Tax, where the consignor or consignee of goods is one of the following categories:

(i)  Factory registered under or governed by the Factories Act, 1948;

(ii)  Company formed or registered under the Companies Act, 1956;

(iii) Corporation established by or under any law;

(iv) any Society registered under the Societies Registration Act, 1860 or under any law corresponding to that Act in force in any part of India;

(v)  Co-operative Society established by or under any law;

(vi) dealer of Excisable goods, who is registered under the Central Excise Act, 1944 or the  rules made thereunder;

(vii) body corporate established or a partnership firm registered, by or under any law.

In all other cases, the Service Tax is liable to be paid by the GTA.

NOTE :     When the recipient of GTA service is falling under any of the above mentioned seven categories, the Service tax should necessarily be paid only by the recipient of GTA service (who makes payment towards freight), and not by the provider of service (GTA).

Persons liable for Registration in respect of GTA service :

Requirement of Registration is limited to persons liable to pay Service Tax. Thus, in the case of the categories (i) to (vii) mentioned above, the person liable to pay Service Tax (recipient of the service) is required to get registered. In all other cases, the Goods Transport Agency should obtain Registration.