Service tax on vehicles used for own transportation purposes (under goods transport by road service)

[kiran pai]

Dear sir, our company is a manufacturer exporter of textile products having our own vehicles for transportation. We are utilising the service of inward and outword transportation of our goods by these vehicles for our own purpose. We are not raising the lorry receipt for any of the transportation. Now my request is please let me know is it necessary to pay service tax on the service of these vehicles (trucks) under goods transport by road service.

[Surender Gupta]

Services can not be provided to self! Since you are the owner of the trucks using these trucks for transportation of goods for yourself, specifically in case of export, from your premises to port, you are the consignor and consignee both, in this situation I did not see any thing that anyone would be termed as goods transport agency for the purpose of service tax. Yes, the situation may be different in which you are sending goods to the domestic buyer and collected amount of freight from the buyer in capacity of goods transport agency.

AI Summary

Self-provision of transport services is not taxable under goods-transport rules unless operating as a goods transport agency. No service tax arises when a company uses its own trucks to transport its own goods because services cannot be provided to oneself; where the owner is both consignor and consignee this does not constitute a goods transport agency transaction chargeable to service tax, though transporting for third parties and collecting freight as a goods transport agency may be taxable.