TaxTMI 
TaxTMI 
GTA service - scope
17 Feb 2010 
2 Replies 
1505 Views Asked by
GTA service classification depends on consignment note presence; courier agency taxability can remain regardless of vehicle documentation.
One advisory view treats GTA service as dependent on issuance of a consignment note, so absence of such a note may indicate a hire transaction subject to classification as Supply of Tangible Goods for Use. A contrasting view treats the courier operator's activity as a taxable Courier Agency Service even where the hired vehicle does not issue a consignment note, with the vehicle owner's classification depending on the contractual nature of the arrangement. (AI Summary)
One advisory view treats GTA service as dependent on issuance of a consignment note, so absence of such a note may indicate a hire transaction subject to classification as Supply of Tangible Goods for Use. A contrasting view treats the courier operator's activity as a taxable Courier Agency Service even where the hired vehicle does not issue a consignment note, with the vehicle owner's classification depending on the contractual nature of the arrangement. (AI Summary)
our client covered under courier agency service. they hire lorry from the open market, put the parcels in the lorry and then send it from one destination to another. Suppose from kolkata to mumbai. Lorry driver off load the goods at mumbai, collect their lorry hire charges at mumbai. lorry owner/driver neither issues consignment note nor any kind of invoices. My query is whether this will attract under GTA services or not. give reasons please.