Hello Experts. We are engaging local vehicle owners for carrying our goods who are not issuing any consignment note. Is service tax payable by us on the freight paid to them.
Second, one of such vehicle owner is owning more than one vehicle and is carrying our goods in such vehicles. He is submitting a bill for freight on weekly basis and payment to him is made by cheque and since the amount exceeds Rs.75,000 we are deducting TDS. Will the position change in such case.
Debate on Service Tax Applicability for Local Goods Transport Without Consignment Notes Under Notification 30/2012, Section 65B(44) A discussion on service tax applicability for goods transported by local vehicle owners without issuing consignment notes. The initial query questions whether service tax is payable under such circumstances, especially when payments exceed Rs. 75,000 and TDS is deducted. Responses vary, with some experts asserting service tax is due regardless of consignment notes, citing Notification 30/2012 and Section 65B(44) of the Finance Act. Others argue that without consignment notes, these services fall outside the Goods Transport Agency (GTA) definition, thus exempting them from service tax. The debate highlights differing interpretations of legal definitions and tax obligations. (AI Summary)
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