We are availing the services from an individual for hiring of one Dedicated vehilce on daily basis and rate is also fixed for a day for 8 hrs. He does not prepare any consignment note on daily basis but have a log book which we sign as and when we receive his services.
He is not charging any taxes on his invoice. He also declares that his total taxable servics are below 10 lacs.
Kindly advice for the following :
1. Whether this comes under the preview of GTA ?
2. Suppose it is not under GTA, what taxes should be deducted from his payments ?
Hiring Dedicated Vehicle: Service Tax Implications Without Consignment Notes and Turnover Below Rs. 10 Lakh Exemption Limit. A company is seeking advice on whether hiring a dedicated vehicle for local movements falls under the Goods Transport Agency (GTA) for service tax purposes. The service provider does not issue consignment notes and claims taxable services below Rs. 10 lakh, thus not charging service tax. Responses clarify that without consignment notes, service tax may not apply. If the service provider's taxable turnover is below the exemption limit, they are not liable for service tax. Additionally, the responsibility for service tax payment may fall on the service receiver if they meet certain criteria under the Factories Act or Companies Act. (AI Summary)
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