Service Tax on Truck owner

[Kaustubh Karandikar]

XYZ(Proprietor) is owning trucks / tempos which is given on hire to a Goods Transport Agency. Is XYZ required to pay service tax on the amount received from GTA? XYZ had received a Show Cause Notice for the past period on this issue. In my view XYZ is not required to pay service tax being exempted under Sr.No.22 of Notification No.25/20212 ST. Views of the experts please.

AI Summary

Truck Owner Likely Exempt from Service Tax Under Sr.No.22, Notification 25/2012-ST; Proof Needed for Claim A truck owner, referred to as XYZ, who hires out vehicles to a Goods Transport Agency (GTA), received a Show Cause Notice regarding service tax obligations. Participants in the discussion agree that XYZ is likely exempt from service tax under Sr.No.22 of Notification No.25/2012-ST. They emphasize the importance of providing documentary evidence to support the exemption claim, as the burden of proof lies with the claimant. Concerns are raised about indiscriminate issuance of Show Cause Notices without prior investigation. The discussion highlights the need for solid evidence to defend against such notices, with the legal burden of taxability on the department.