GTA - Hiring of Vehicle on Per Day Basis without any LR

[PAWAN KUMAR SHARMA]

Dear Sir,

Presently, we have a contract with one of Travel Agent who will provide us vehicles on per day basis as and when demanded, the rate is fixed for 8 hrs in a day and for every additional hour, if total hours are more than 8 hrs. The usage of the vehicle is for local movement, movement within the plant.

He is billing us on monthly basis and not charging any tax as his total taxable services are below 10 lacs.

We are also not depositng any service tax on such payments and rather we are deduction TDS under sec 194 C.

I want to clarify that

1. Whether this will come under the preview of GTA or Not ? (considering that there is No LR/Consignment Note for these movements.)

2. Suppose this services are covered under GTA, whether by taking a declaration from the vendor that his services are below 10 lac, can we escaped from the liability of service tax under GTA ?

3. Whether the procedure we are following is correct as per the laws ?

AI Summary

Travel Agent's Vehicle Supply Not Subject to GTA Service Tax Without Consignment Notes A company has contracted with a travel agent to provide vehicles on a per-day basis for local movement, without issuing any consignment notes. The company queries whether this arrangement falls under the Goods Transport Agency (GTA) provisions, which would require them to pay service tax. Replies indicate that if the travel agent merely supplies vehicles without taking responsibility for the goods (e.g., not issuing consignment notes), it is not considered a GTA service. However, if the agent is transporting goods and responsible for them, it falls under GTA, and the recipient must pay service tax. The travel agent's main business includes booking tickets and providing taxis, not goods transport.