Services by GTA

[Harsh Jindal]

Are all services provided by GTA are liable to service tax?

[YAGAY andSUN]

Exemptions under GTA Services:-

1. Exemption in relation to transportation of fruits, vegetables, eggs or milk.
2. Exemption to transportation of food grain or pulses by road w.e.f. 20-02-2010.
3. Where freight charges for the goods carriage is less than or equal to Rs. 1500/- or where the freight paid or payable for the consignment is less than or equal to Rs. 750/-

 

 

[JAMES PG]

In addition, when   in relation to service provided or agreed to be provided by a GTA in respect of transportation of goods by road, where the person liable to pay freight is,-

(I) any factory registered under or governed by the Factories Act, 1948 (63 of 1948);

 (II) any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any other law for the time being in force in any part of India;

(III) any co-operative society established by or under any law;

(IV) any dealer of excisable goods, who is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder; (V) any body corporate established, by or under any law; or

 (VI) any partnership firm whether registered or not under any law including association of persons;--

GTA is not liable to pay ST but the person who pays or liable to pay freight is responsible for payment of Service Tax

[YAGAY andSUN]

Transportation of Household articles also qualifys for exemption from Service Tax.

[Ganeshan Kalyani]

The notification no 25/2012 dated 20.06.2012 is amended from time to time. the clause (d) of entry no.21. In the substituted clause the text food grain is mentioned. I would request to contribute your views with regards to what all can to classified as food grain. Where can we find the definition of food grains which would legally be accepted.

AI Summary

GTA services exemption: specific road transports are exempt and freight payers may bear service tax liability. Exemptions for Goods Transport Agency services cover transportation of fruits, vegetables, eggs, milk, foodgrains and pulses, household goods, and consignments subject to low freight thresholds; when freight is payable by certain defined persons (factories, societies, cooperative societies, registered dealers of excisable goods, bodies corporate, or partnership firms), the freight payer, not the GTA, is responsible for the service tax. The scope of the 'foodgrain' exemption raises definitional questions.