Tax payment

[Gopal B]

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.

AI Summary

Goods Transport Agency service characterization determines reverse charge service tax liability when consignment notes are issued.
Where a manufacturer transports goods for another person for consideration and issues consignment notes consistent with the statutory definition of Goods Transport Agency, the service attracts service tax under the reverse charge mechanism, with the consignor or consignee liable and the taxable value determined after applying the prescribed abatement to the gross freight. Determination depends on issuance of consignment notes, the nature of the vehicle as a goods carriage, and applicable notifications and circulars.