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.

AI Summary

Textile Exporter Using Own Trucks for Transport Not Subject to Service Tax; Freight Charges May Change Status A company engaged in textile manufacturing and exporting inquires about the applicability of service tax on using its own vehicles for transporting goods. The company does not issue lorry receipts for these transport activities. The response clarifies that since the company owns the trucks and uses them solely for its own transportation needs, particularly for exports, it does not qualify as a goods transport agency, and thus, service tax is not applicable. However, if the company transports goods to domestic buyers and charges freight, it may then be considered a goods transport agency subject to service tax.