Goods Transport Agency

[guna ch]

Dear Sir,

According to theNotification No.34/2004

(i)	the gross amount charged on consignments transported in a goods carriage does not exceed rupees one thousand five hundred; or
(ii)	the gross amount charged on an individual consignment transported in a goods carriage does not exceed rupees seven hundred fifty

I Could not understand the difference between the above two points , Kindly any one please explain me where we can claim exemption Rs. 1500/- and where Rs. 750/-

We paid Rs. 1400/-  to one transporter who even not give a bill is it exemptable amount to pay ST  

[CASeetharaman KC]

In Mega Exemption Notification no 25/2012  the wordings are as under:

(b) goods where gross amount charged for the transportation of goods on a consignment transported in a single goods carriage does not exceed one thousand five hundred rupees; or

(c) goods, where gross amount charged for transportation of all such goods for a single consignee in the goods carriage does not exceed rupees seven hundred fifty;

You need to check whether the payment you made for Rs 1400 is for goods transported in a single good carriage, if so it is exempt. However if it is for a single consignee then it is taxable

[guna ch]

Thank You Sir, Pease Clarify the following

1. According to first point goods transported from one transporter for Rs.1500/- is excempted

Ex:

If we transported Ms Rounds from Associated Road Carriers Ltd on 01/04/2012   for Rs.1500/- then it is exempted, if we transported Ms Rounds( Single Good) from same transporter on 15/04/2012 for Rs. 1500/- then the Total Amount of Transportation is Rs.3000/- so it is not exempted.

to Claim the exemption the folloing should be stisfied

1. there must be single good

2.One transporter

3. Transportation amount is Rs.1500/-

 

According to Second point

1. There must be a  Single consignee (Sller)

2. Multiple goods

3. multiple transporters

4. Transportation amount is Rs.750/-

 

Sir please correct if is any mistakes in the above

[CASeetharaman KC]

Dear Sir

As per my understanding the wordings are "single goods carriage" which means vehicle. So if the value of goods transported in one vehicle to various consignees does not exceed Rs 1500 it is not subject to tax. In your question if the goods carriages are different then exemption is available

The Rs 750 limit applies for the limit of the consignments to any particular consignee not to exceed Rs 750 for each truck load 

The first situation is where consignments are transported in a single goods carriage for different consignees and the total freight does not exceed Rs. 1500/- in all.  

The second situation covers an "individual cosignment' trasported by a GTA for a particular consignee.  In such a situation if the gross amount charged to one consignee is Rs. 750/- or less there will be no levy of service tax.  The limit of Rs. 750/-  is with reference to each truck load carried for a particular consignee.

 

AI Summary

Service tax exemption thresholds for goods transport: vehicle-level and consignee-level tests determine taxable status per trip. Service tax exemption operates via two distinct tests: a vehicle-level test where the gross amount charged for transportation in a single goods carriage (per vehicle trip) below the threshold is exempt, and a consignee-level test where the gross amount charged for all goods for a single consignee in a goods carriage below a lower threshold is exempt. Apply the vehicle test when assessing a whole truck load; apply the consignee test when assessing the amount billed to an individual consignee for that truck load.