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
Debate on Service Tax for Local Transport: Is Hiring from Individual Owners Taxable under GTA or Tangible Goods Supply? A discussion forum addresses the applicability of service tax under Goods Transport Agency (GTA) for vehicles hired for local transportation of inputs. The query involves hiring vehicles from an individual owner, not a transport company, without issuing a consignment note. Responses vary: one suggests the service may not be taxable under GTA, another argues it falls under the supply of tangible goods, making the owner liable for service tax. Another opinion states the transaction is taxable under transport of goods by road services, with the service receiver liable for tax. The consensus leans towards taxation under supply of tangible goods. (AI Summary)
TaxTMI 
TaxTMI 
