godds transport service

[HIMANSHU JARIWALA]

The query is relating to goods transport agency service:
1.
My client, a private limited company, say ABC Pvt. Ltd. purchases imported coal from PQR Ltd. and sells the same goods to Mills, a factory, located in Pandesara & Sachin, without taking any delivery. Such goods are transported directly from Magdalla port to Mills, located in Pandesara & Sachin. The billing system for transportation charges are as follows:
Rs.100/- Rs.120/- Rs.150/- Transporter X ==
PQR Ltd. ==> ABC Pvt. Ltd.
Mills, located in Pandesara & Sachin Neither Transporter X nor my client owns any truck but both the parties have taken registration under Goods Transport Agency services as “ServiceProvider”. Both the parties issue bill writing narration “TransportationChargesfrom MagdalaPorttoMil” so w.e.f. 01/07/2012, who is the person liable to pay service tax & on what amount?

Does it make any difference if we open new proprietorship concern w.ef.07/07/2012 and start billing as follows?
Rs.100/- Rs.120/- Rs.150/- Transporter X =
PQR Ltd. =
ABC =
Mills, located in Pandesara & Sachin Proprietorship Concern
In this case, who is the person liable to pay service tax & on what amount?

2. Is it till legally valid w.e.f.01/07/2012 under reverse charge mechanism that GTA collects service tax from the service receiver and pay to credit of the central government as majority of the service receiver does not have Service Tax Number?

AI Summary

ABC Pvt. Ltd. and Transporter X face service tax query on coal transport post-2012 changes under Notification No. 30/2012. A private limited company, ABC Pvt. Ltd., is involved in a transaction where imported coal is purchased from PQR Ltd. and sold directly to Mills in Pandesara and Sachin without taking delivery. The transportation charges are billed through Transporter X, with both ABC Pvt. Ltd. and Transporter X registered under Goods Transport Agency services. The query concerns who is liable for service tax under these circumstances, particularly after changes effective from 01/07/2012. The response clarifies that under Notification No. 30/2012, the service tax is paid by the service receiver if they fall under specific categories. If not, the Goods Transport Agency must pay, considering the Rs.10 lakh exemption limit.