Applicability of exemption limit on GTA

[Guest]

Whether threshold limit of Rs.4lac, which is now extended to Rs.8lac, is applicable to consignee service tax regn.holders taken regn. under goods procured by transport agencies? Also please clarify meaning of service tax regn.limit extended to Rs.7lac?

[Guest]

Benefit of exemption upto Rs. 4 lacs (Rs. 8 lacs) is not available to consignee or consignor who are liable to pay service tax in the capacity of recipient of services. For general category who are eligible to avail exemption are not supposed to seek the registration certificate if their turnover is not exceeding Rs. 7 lacs (earlier 3 lacs)

[Dilip singh]

That means even if the consignee has done one transaction of Transportation invovlving payment of say Rs. 50,000/- during a financial year will have to register and make payment of service tax to the revenue?

AI Summary

Exemption applicability: consignee or consignor recipients are excluded from threshold benefit; registration threshold relieves small suppliers. The exemption threshold does not extend to a consignee or consignor who is liable to pay service tax as recipient of services; such recipients must register and discharge tax obligations regardless of low-value transactions. Conversely, general-category persons whose aggregate turnover does not exceed the stated registration threshold are not required to obtain a service tax registration certificate.