goods transport sevice

[naresh kumar]

GOODS TRANSPORT SERVICE IS ALSO COVERED UNDER REVERSE CHARGE UNDER SECTION 68 OF SERVICE TAX                                  

THAT PROVIDES THAT IF CONSIGNOR OR CONSIGNEE  IS COMPANY   (i.e. established under Companies Act, 1956)

WHEN GOODS SENT BY A COMPANY  TO AN INDIVUAL AND FREIGHT TO BE PAID BY INDIVIUAL

Q:     WHETHER INDIVUAL SHOULD BE REGISTERED TO SERVICE TAX ( GTA SERVICE IS RS.2000)

Q:     EXEMPTION  Notification No. 6/2005 IS NOT APPLICABLE IN REVERSE CHARGE CASE THEN AN INDIVUAL HAVE TO PAY SERVICE TAX ON GTA SERVICE?IS THERE ANY SECTION/NOTIFICATION/CIRCULAR PROVIDE EXEMPTION TO AN INDIVIUAL KINDLY GIVE ME ANSWER          

AI Summary

Clarification on Service Tax: Individuals not typically liable under Section 68 reverse charge unless specific exemptions apply. A discussion on a forum addresses whether an individual must register for service tax when paying freight for goods transported by a company, under the reverse charge mechanism of Section 68 of the Service Tax Act. It is clarified that the reverse charge applies if the consignor or consignee is a company, but individuals are not typically liable unless they fall within specific categories such as factories or registered companies. One participant points out a potential issue in the notification's drafting, suggesting that the individual might still be liable if the consignor is a company, despite the exemption threshold.