GTA or Supply of Tangible Goods ?

[Asked by Guest]

Hello Experts,

We are manufcturing company. We are sending goods to adjasent unit on job work basis. Job worker is group company. Material are received back in factory on complition of Job work. We are using PRIVATE ROAD for movement of goods. Also note that GTA is issuing consignment Note.

My question is whether service tax will be applicable under service category of "GTA or Supply of Tangible Goods" as the road used for transporting/movement of goods is PRIVATE/OWNED BY GROUP COMPANY ?

Thanks.

Regards,

Gaurang

[Himansu Sekhar]

Cargo handling services

[KASTURI SETHI]

Dear Querist,

In my views, in this case two taxable services are involved.

(i) Transportation of goods by road (may be public road or private road).

(ii) Road (in your case private road) is immovable property. Usage is covered under "Renting of Immovable Property" a declared service under Section 66(E)(a) of the Finance Act, 1994.

I have read somewhere the definition of "Road" ."Road is a building without wall and roof" in a judgement by some court (I could not trace out that judgement).

I also expect the views from learned experts on this issue.

[Nash Industries I Pvt Ltd]

Please specify- whether the jobbing unit is a group company or another unit of the same company.

If it is an unit of the same company, then a single registration under central excise is permitted as per the amendment in Budget 2016.

if the transport is owned by the unit itself then no service tax is applicable. Else Service Tax is leviable as GTA irrespective of who owns the road.

Regards

S.Ramaswamy

9686088864

The issue of GTA is

[YAGAY and SUN]

GTA Services provided units having separate C.E. Registration Certificates.

Thank you experts for your valuable comment...

AI Summary

Transportation of goods by road taxable as GTA even when private road used; renting of immovable property may also apply.
Where a transporter issues a consignment note and performs carriage, Transportation of goods by road is taxable as a Goods Transport Agency service regardless of whether the road used is private. Use of a private road may separately attract tax as Renting of Immovable Property if a distinct service/charge for road use exists. No service tax arises on intra-entity movement where a single registered entity provides the transport or a single central registration covers both units.