applicable of service tax

[Gaurav Agrawal]

1. we are providing the transportation service by road and issuing consigment note to the party which act as transporter.

we are not having any truck but from market through broker we arrange and supply to pvt. ltd. co. for transportation of there goods and tds will be deducted under sec.194

The payment received from party to me fully on my account and from that i paid to owner driver of truck.

my question is that the diffence of margin is act as commision to me or not and i have fully authority to change my rate as per my accordingly.

sholud i cover in defination of GTA (GOODS TRANSPORT AGENCY) by fulfillment of condition 1.

whether differnce of margin act as commission on which service tax is liable.

AS per sec. 68REVERSE CHARGE MECHANISM TO ME AS I PROVIDE SERVICE TO PVT .CO.

I received a notices from Service tax officer said that margin for me is commission and we are liable to pay servicce tax on it.

AS per Intermediary defination by Rule 2(f) IT EXCULDED ME

i only providing main service of transportation of good to service to consignor and consignee on my account as firm name.

 

AI Summary

Debate on Service Tax Applicability: Is Margin on Transportation Services a Commission or Profit? A discussion on a forum addresses the applicability of service tax on margins earned from transportation services. The primary issue is whether the margin difference should be considered a commission, thereby attracting service tax. One participant argues that the margin is a commission and subject to service tax under the business auxiliary service category. Others suggest that the margin is a profit, not commission, thus exempt from service tax, with the consignee liable under the reverse charge mechanism. A separate query about invoicing in USD for an Indian establishment is also discussed, suggesting it is permissible with specific invoicing details.