GTA Limit Rs.750.

[Mridul Sethi]

Sir, Plz clear my doubt that GTA limit is 750 or exceed there after.

[YAGAY andSUN]

No service tax is payable in respect of services of goods transport agency for transportation of goods by road in case where the freight charges for the goods carriage is less than or equal to Rs. 1500/- or where the freight pad or payable for the consignment is less than or equal to Rs. 750/-. 

 Here, it is clarified that all the consignment sent to the same consignee by a consignor through a goods transport agency will be considered as one consignment and service tax shall be payable on the total of the freight charges of all the consignments. This restriction is in respect the consignee however there is no such restriction on the consignor, thus the consignor can claim the benefit of this exemption in respect of the goods sent to different consignee where value of each consignment is less than Rs. 750.

[Mridul Sethi]

Sir Pls acknowledge your  below 2 paragraphs

       Para no.1:- Here, it is clarified that all the consignment sent to the same consignee by a consignor through a goods transport agency will be considered as one consignment and service tax shall be payable on the total of the freight charges of all the consignments. 

DIFF.CONSIGNMENT IN VEHICLE = ONE CONSIGNMENT , if consignment is received in different veh.then it should be taken as diff.consignment

Also if consignee has two sister concern at a location, it should also be taken as diff.consignment of each concern even if the consignment is in same veh.

(if consignee is liable to pay tax)

Para no.2:-This restriction is in respect the consignee however there is no such restriction on the consignor, thus the consignor can claim the benefit of this exemption in respect of the goods sent to different consignee where value of each consignment is less than Rs. 750.

ONE VEHICLE = CONSIGNMENTS DIFF. CONSIGNEE (If consignor is liable to pay tax) 

AI Summary

GTA exemption threshold exempts service tax when freight for carriage or consignment falls below set limits; aggregation by consignee. No service tax is payable on GTA road transport services where freight for goods carriage does not exceed Rs.1500 or where freight payable for an individual consignment does not exceed Rs.750. All consignments sent by a consignor to the same consignee through a GTA are aggregated as one consignment for tax purposes and tax is payable on the total freight; this aggregation applies to the consignee, while the consignor may claim the exemption separately for consignments to different consignees provided each consignment meets the consignment-level limit.