GTA service tax

[Guest]

Transportation of all Military canteen items from military Main canteen to different
military canteens (Unit run Canteen) grocery by road(GTA) is liable to service tax or not?. Is it
is necessary to collect and pay service tax by the service provider in this case.?
From where I can get the specific list of service tax exempted items of grocery ( for
exemption to GTA).Is there is any mechanism for checking a specific item exempted from
service tax for GTA for the transportation.(like applicability of VAT checking in
http://keralataxes.gov.in/taxrate.aspx)

[KASTURI SETHI]

Dear Sh.Frankling G,

Specific list of exempted items has been provided in Notification No.25/12-ST dated 20.6.12 as amended vide notification no. 6/15-ST dated 1.3.15 (See Serial No. 21 (d). These are milk, salt and food grain including flours, pulses and rice.

In case the military uses its own trucks for transportation of any goods from Main Military Canteen to different military canteens, then it is self service. self service is no service as per definition of 'Service' under Section 65 B(44) of the Finance Act, 1994. Hence no service tax is applicable.

[Ganeshan Kalyani]

Sir in my view goods transport agency is liable to pay service tax if not paid by canteen store department.

In sales tax the exemption was there earlier now CSD has to collect and pay tax. This is my view.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Sir, I agree to the extent that if Military canteens engage services of GTA, they are liable to pay ST except those items mentioned in my reply. Secondly, if they use their own trucks for transportation of goods from one canteen to an other canteen, that is self service. Self service is no service.

Moreover, we cannot compare Sale Tax department with Service Tax department every department has its own rules & regulation and policies.

[PAWAN KUMAR]

Dear Sir,

As per my view, if the services are provided by GTA to any person liable to pay freight is fall under the below category, service tax would be charged. If the person receiving services does not fall under the category, service tax would not be leviable. The categories of person liable to pay freight is :

(a) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

(b) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(c) any co-operative society established by or under any law;

(d) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder;

(e) any body corporate established, by or under any law; or

(f) any partnership firm whether registered or not under any law including association of persons;

[CSSANJAY MALHOTRA]

Am in agreement with Sh. Kasturi ji & Sh. Ganeshan ji that until and unless the transportation of specific item is exempted from service tax, GTA has to pay the service tax in case of transportation of goods for Military as it does not fall into RCM...

[Guest]

Dear PAWAN KUMAR sir,

Defence department does not comes under the categories ( from a to f ) you have mentioned .Which means defence department deed not pay service tax for the freight?.

[KASTURI SETHI]

Dear Sir,

If Service Provider (GTA) is to pay ST, he is to deposit ST after collecting from Service Receiver under forward charge system in terms of Section 68(1) of the Finance Act. Options mentioned by Sh.Pawan Kumar expert are meant for RCM. RCM is not applicable here as mentioned by Sh.Pawan Kumar Sir.

AI Summary

Goods transport agency service tax may apply to canteen transport unless exempt items or self service; provider collects under forward charge. Transportation of military canteen goods by a GTA is taxable unless the goods are within specified exemptions (notably certain food items). If the military uses its own vehicles, that constitutes self service and is not a service under the statutory definition; where a GTA is engaged the GTA must generally collect and deposit service tax under the forward charge framework.