Issues pertaining to levy of service tax on goods transport agency

Service tax on goods transport agencies: liabilities, exemptions, consignment note and administrative safeguards for collection and enforcement.

Levy of service tax applies to services by a goods transport agency in relation to transport of goods by road in a goods carriage. Notifications prescribe exemptions (partial conditional exemption, perishable commodities, low-value consignments), allocate liability to the freight payer for specified commercial consignors/consignees with remaining liability on the goods transport agency in other cases, and mandate a serially numbered consignment note containing enumerated particulars. Administrative guidance limits registration to liable persons, allows centralized registration, restricts en route verification and subordinate audits without senior authorization, limits pre-imposition record demands, and prescribes recovery with interest but no penalty for transitional omissions except in cases of deliberate evasion.