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. 68 REVERSE 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

Service tax liability on margins treated as business profit; consignee liable under GTA reverse charge mechanism.
The margin earned by an arranger who issues consignment notes and collects freight on its own account is characterised as business profit (not commission) and the arranger is excluded from the intermediary definition; where the activity is a Goods Transport Agency service, service tax liability attaches to the person who pays freight (the consignee) under the reverse charge mechanism.