Cenvat credit

[yateen vyas]

Sir,

We are using a small truck for carry our input/capital goods purchased in small quantity.Eg. My plant is situated away from Main city so we are using a small truck on rent for carry small quantity of goods from main city to my Plant. A contract is made for 3 trip in month and 1500 for per trip rent is fixed.

Now i want to it will attract any service tax under reverse charge service or any other service.

[YAGAY andSUN]

Dear Yateen,

According to us No service tax would be applicable on this transaction.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[CSSANJAY MALHOTRA]

Dear Yateen,

Refer to Service Tax Notification No. 25/2012 dated 20.06.2012 (Serial No. 21) which provides Exemption from Service Tax as below. Freight upto ₹ 1500/- as applicable in your case is within exemption limit and hence is exempted from Service Tax. If the same increases to ₹ 1501/- no exemption is available.

21. Services provided by a goods transport agency by way of transportation of -

1. fruits, vegetables, eggs, milk, food grains or pulses in a goods carriage;
2. 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
3. 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;

[Guest]

DEAR YATEEN

ACCORDING TO US NO SERVICE TAX WOULD BE APPLICABLE BUT THERE IS A CASE LAW "(mad)-cce vs. Suibramania Siva co op sugar Mills Ltd. 2014 (11) TMI 925 - MADRAS HIGH COURT" PLEASE REFER TO THIS CASE LAW BECAUSE IT IS CONTRADICTING TO OUR INTERPRETATION FOR LIMIT OF RS 750/1500 APPLICABILITY .

BY PRATHIT MAINI

[SHREEPAD BHAT]

As per the Service Tax Notification No. 25/2012 dated 20.06.2012 (Serial No. 21)

[21. Services provided by a goods transport agency, by way of transport in a goods carriage of,-

(a) agricultural produce;

(b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

(c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

⁴²[(d) milk, salt and food grain including flours, pulses and rice; ]

²⁵[(e) chemical fertilizer, organic manure and oil cakes; ]

(f) newspaper or magazines registered with the Registrar of Newspapers;

(g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

(h) defence or military equipments;]

²⁶[(i) cotton, ginned or baled.]

Observing the above Notfn. it is related with essential services, but as far as manufacturing activity one should go with the limit with ₹ 750/- and pay ST accordingly

AI Summary

Service tax exemption for goods transport agency services may apply to short distance rented truck transport under threshold rules. Applicability of service tax to short-distance rented truck services depends on the exemption for services by a goods transport agency in Service Tax Notification No. 25/2012 (Serial No. 21), which provides threshold-based exemptions for consignments charged below specified gross amounts; respondents advised no service tax if freight is within those exemption limits, but a cited Madras High Court decision may contradict that interpretation and a note suggests the lower per-consignee threshold is applied in manufacturing contexts.