TaxTMI 
TaxTMI 
Service tax on GTA
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....ervice tax on GTA<br> Query (Issue) Started By: - Mridul Sethi Dated:- 7-12-2011 Last Reply Date:- 1-12-2012 Service Tax<br>Got 11 Replies<br>Service Tax<br>Pls clear me, 1. About the limits of Rs.750/- & Rs.1500/- in case of GTA. 2. Also, is every assessee liable to GTA service tax is eligible for exemtion of 75% Reply By Pradeep Khatri: The Reply: The first covers an "individual cosignment' ....
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....trasported by a GTA for a particular consignee. In such a situation if the gross amount charged for tranport of thses goods in 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. The second situation is where consignments are transported in a goods carriage for different consignees and the total fr....
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....eight does not exceed Rs. 1500/- in all. In such case also there is exemption from service tax, even if the goods are carried by a motor vehicle against different consignment notes. W.e.f. 01-03-2008, exemption from service tax which is in excess of 25% of the value has been granted unconditionally vide Nofn.13/2008-ST dated 01-03-2008. Reply By Mridul Sethi: The Reply: But pls let me clear, fr....
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....om a company point of view how can I decide that the Goods Transport Agency has booked only one cosingment or more than one in a particular vehicle. Reply By Pradeep Khatri: The Reply: You have raised a logical and a very good question that who will find out and decide whether the freight on single consigment is Rs. 750/- or 1500/- so as to be eligible for exemption. The answer clearly is the G....
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....oods Transport Agency. Only the GTA will know whether the goods being carried in a goods carriage qualify for exemption under Rs. 750/- or Rs. 1500/- limit respectively. Accordingly a goods transport operator eligible for either exemption under Rs. 750/- or Rs. 1500/- limit should preferable declare that the goods are eligible for service tax exemption under notification no. 34/2004 dt. 3-12-2004 ....
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....in the consignment note or bill raised by him. The user of the service has to educate the transporter on this matter. Reply By Mridul Sethi: The Reply: Sir, -->It is okey to educate the transport to give such type of declartion, -->but in practical we purchase maximum material on to-pay basic & -->there are too much unknown transporters who bring the material in company. -->So, pls sugges....
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....t what to do in such a situation, whether I have to make standard of Rs. 750/- regardless of any type of consignment, but in such a case I have to problem in reporting to management that why Rs.1,500/- limit not taken. Reply By Pradeep Khatri: The Reply: Simply, you need not to pay the tax on such amount. Reply By vijay kumar: The Reply: In the first case i.e. where the gross amount charged fo....
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....r a consignee is less than Rs.750/-, there is no problem since the goods transporter will raise the bill to you accordingly and you will know that there is no need to pay the tax. The problem arises only when the gross amount charged on the consignments in a goods carriage is less than Rs.1500/-, particularly when your charges are more than Rs.750/-. Hence in a specific case where your charges are....
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.... more than Rs.750/- and the gross charges are less than Rs.1500/- , ask your transporter to indicate the same in the bill. That should solve your problem. Reply By NK SHETE: The Reply: Dear Sir, Please inform what remark the transporeter should write on the bill when the charges are more than Rs. 750 but less than Rs. 1500 Reply By ASITAVA CHACKERBUTTY: The Reply: first you have to determine....
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.... whether local truck owner was used or GTA service was used. If local truck owner then no service tax payable for any amount paid. If GTA SEVICE USED THEN DECLARATION FROM gta WOULD BE NECESSARY FOR 1500 LIMIT. Reply By Sumit Sharma: The Reply: please see Nofn.13/2008-ST yes every assessee is eligible for exemption of 75% Reply By vijay kumar: The Reply: The GTA operator should certify that t....
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....he gross amount charged on all the consignments in a goods carriage is less than Rs. 1500/-. In such a case, u will have proof for claiming exemption under the second category. Regarding abatement of 75%, every assessee liable to pay the service tax on GTA is eligible for the same w.e.f. 1.3.2008 in terms of Nofn.13/2008-ST dt.1.3.2008. Reply By VAIBHAV SACHDEVA: The Reply: Is TDS liable to be d....
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....educted on payments made to GTA u/s 194C ??? CA. Vaibhav Sachdeva<br> Discussion Forum - Knowledge Sharing ....