Who can be a transporter

[JOHN SHANNEL]

i Came across one bill in my company who has provided a transportation vehicle for my company. The Vehicle is used for the purpose of transportation of Finished Goods from our depot to Distributors. The Vendors is not a transporter rather a warehousing agent but provides his vehicle for transportation of goods.

Is it right to do so. We also dont deductm TDS since he has provided PAN No.

Please clarify.

Regards

John Shannel

[NEERAJ KUMAR, RANCHI]

Please refer to Rule 2(d)(v) of the Service Tax Rules 1994, where person liable for paying the service tax has been defined.

AI Summary

Transporter definition determines service tax liability and withholding obligations when a vendor supplies vehicles for goods movement. Query whether a warehousing agent who supplies a vehicle to transport finished goods to distributors qualifies as a transporter for service tax and withholding purposes; response directs to the statutory definition of the person liable to pay service tax in the Service Tax Rules 1994 to determine when supply of vehicles or carriage-related services attract service tax and related withholding obligations.