Applicability of Service Tax under GTA for temo hired for local transportation of inputs

[Achyut Kale]

We have hired a godown outside a factory premises for storage of inputs. For transportation of inputs from godown to factory we have hired vehicles from individual owner (Not a transport compnay). Being a Vehicle owner is an individual,  he is not issuing any LR or consignment Note for above transportation.

Whether the amount paid against above transportation charges will attract Service Tax under GTA?

Pl advice

 

[YAGAY andSUN]

Service provided by the individual may not be taxable under GTA.

[ROHAN THAKKAR]

What has been hired by you is the vehicles from individual owner. In this case, individual owner will be liable to pay tax under supply of tangible goods under service tax.

The transportation facility is provided by your company to your company only, hence there is no question of making payment service tax under GTA.

 

 

[DEVEN MASTER]

I THINK THIS TRANSACTION IS TAXABLE UNDER THE HEAD OF TRANSPORT OF GOODS BE ROAD SERVICES, AS PER CIRCULAR IS SERVICE PROVIDER IS INDIVIDUAL OR PROPRIETOR THEN SERVICE TAX LIABILITY IS ON SERVICE RECEIVER AND THEREFORE SERVICE RECEOVER HAS TO PAY SERVICE TAX ON THE SAME TRANSACTION.

[rajkumar shukla]

I AGREE WITH ROHAN. IT IS TAXABLE UNDER SUPPLY OF TANGIBLE GOODS SERVICE

[NANDKUMAR SAGWEKAR]

This service is not 100% Transport of goods by road , because vehicles are not hired through GTA , Your not making any payments to GTA .

For supply of tangile goods , once again you see the profile of this service on govt website and decide

Thanks

 a m shembekar

AI Summary

Service tax on transportation of inputs: classification as GTA, transport by road, or supply of tangible goods affects liability. Whether service tax under the Goods Transport Agency or another taxable head applies when an enterprise hires individual vehicle owners (who do not issue LRs) to transport inputs from an off-site godown to its factory, with contributors disagreeing whether the payments constitute GTA, Transport of Goods by Road, or Supply of Tangible Goods service and whether tax liability rests on the provider or the receiver.