goods transport sevice

[Asked by Guest]

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

Reverse charge on goods transport may require the freight payer to pay service tax when consignor or consignee is a specified entity.
Liability for service tax on goods transport under Reverse Charge arises where the consignor or consignee is among specified categories (companies, factories, corporations, registered societies, cooperative societies, registered dealers of excisable goods, or registered firms); in those circumstances the person who pays freight is liable to pay tax. There is disagreement whether the statutory exemption threshold applies to relieve a payer made liable under reverse charge.