Service tax on GTA

[Murari Agrawal]

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.

AI Summary

Service tax liability on freight: recipient may be liable under reverse charge even if consignment notes are not issued.
The key issue is whether freight paid to individual vehicle owners who do not issue consignment notes falls within the GTA service covered by Notification No.30/2012, attracting reverse charge liability of the service recipient. One view treats such transactions as taxable GTA services and liable on the recipient; an opposing view relies on the consignment note requirement to exclude individuals. Post amendment emphasis on the statutory definition of "service" means taxability may arise irrespective of consignment note issuance, and non issuance can prompt departmental action.