Dear Sir,
We are manufacturers and using own vehicles to deliver the material. After delivering the material we are carrying other party material and delivering the material at various points. shall we pay S.Tax on this or not.Vehicles are in the name of company.
Service Tax Liability in Goods Transport: Reverse Charge Mechanism and Consignment Note Importance Explained. A manufacturer using company vehicles for deliveries and transporting goods for others inquires about service tax liability. An expert explains that service tax applies under the reverse charge mechanism when a Goods Transport Agency (GTA) is involved, requiring either the consignor or consignee to pay the tax after a 70% freight abatement. Another expert highlights complexities in the transport sector, noting that issuing a consignment note is crucial for defining a GTA. If no consignment note is issued, the service may fall under the negative list, exempting it from tax. The discussion emphasizes careful consideration of definitions and rules. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
