Clarification Regarding Payment of service tax under Reverse Charge Mechanisum

[VAMSI KRISHNA]

Dear All,

'A ltd' is goods transport agency, agreed to transport goods of 'B ltd' & 'C ltd' in a lorry. No others goods are transported in that lorry except goods of 'B ltd & C ltd'. For such transportation of goods 'A ltd' charged ₹ 800 & 600 to 'B ltd & C ltd' respectively.

Now my doubt is

1) The above service provided by 'A ltd' is taxable service or not ????

2) If above service is taxable, as per the provisions of 68(2) who are liable to pay tax under reverse charge mechanisum ????

3) Applicability of excemption specified in mega excemption notification (line item 21 of 25/2012)

 

Thanks in Advance

AI Summary

Transport Service Exempt from Tax Under Notification No. 25/2012-ST; Charges Below 1,500 Threshold A company, acting as a goods transport agency, transported goods for two other companies, charging 800 and 600 respectively. The query raised concerns whether this service is taxable and who is liable under the reverse charge mechanism. Two responses clarified that under Notification No. 25/2012-ST, service tax is not applicable since the total charge of 1,400 does not exceed the 1,500 threshold for exemption. Therefore, neither the service provider nor the receiver is liable to pay service tax under the reverse charge mechanism.