GTA applicability - Hiring of Dedicated vehicles for Local Movements.

[PAWAN KUMAR SHARMA]

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 ?

AI Summary

GTA service applicability: hiring dedicated vehicles for goods may attract service tax where notified payers are involved.
Hiring a dedicated vehicle for carriage of goods by road is prima facie classifiable as a Goods Transport Agency service; exemption notification may relieve taxable suppliers below the prescribed turnover threshold and exempt suppliers need not issue a consignment note. Liability to pay service tax may rest on the freight payer when the consignor or consignee falls within specified notified categories, while factual absence of consignment notes and characterisation of the supplier (e.g., individual truck owner or rent a cab) influences whether GTA treatment and tax liability apply.