tansporter agency

[Gaurav Agrawal]

sir i have rececived a service tax notice and difference they are tearting as a commision of me and gave me intimate to pay on service tax on it.
I m not understanding that is not my commission .

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.194c of me

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.

[Himansu Sekhar]

Please refer to issue ID 111839

[KASTURI SETHI]

Query already replied. If not satisfied, you should consult any advocate who has specialisation in ST.

[Ganeshan Kalyani]

Yes the issue was discussed and replied in all respect. I agree with Sri Kasturi Sir that if the querist is not satisfied with free lunch then he should approach consultant who would charge for the feast.

To make it clear once again, i would like to state that the service provided by the querist is a 'goods transport agency 'service and since the service was provided to a pvt ltd the receiver is liable to pay service tax, if he had paid the freight, after availing the abatement. Thanks.

AI Summary

Goods transport agency service: receiver liable to pay tax under reverse charge after abatement on freight. The document questions whether the margin retained by an organiser who arranges road transport through third-party truck owners and issues consignment notes is taxable as commission or is a Goods Transport Agency service, noting a notice treating the margin as commission. Respondents characterise the activity as GTA and state that for services provided to a private company the recipient is liable under the reverse charge mechanism to pay service tax after availing the abatement, while intermediary exclusion distinguishes the arranger from intermediaries.