TaxTMI 
TaxTMI 
Service tax on GTA
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....ervice tax on GTA<br> Query (Issue) Started By: - KIRAN KUMAR Dated:- 20-8-2016 Last Reply Date:- 21-8-2016 Service Tax<br>Got 4 Replies<br>Service Tax<br>Dear Sir, Our company transporting raw material to rented godowns and viceversa for that transporter (Lorry owner) submitting monthly bill. Please explain the status of Service tax on GTA under reversecharge Thanks & Regards, Kiran Kumar Rep....
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....ly By Rajagopalan Ranganathan: The Reply: Sir, If the Lorry Owner issues a Consignment Note then you are liable to pay service tax on the basis of reverse charge mechanism. Otherwise the service provider (Lorry owner) is liable to pay service tax subject to the condition that his turnover exceeds ₹ 10 lakhs in the previous financial year. Reply By Ganeshan Kalyani: The Reply: Sir, servi....
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....ce tax on GTA is payable by a company being, (recipient of service) under reverse charge basis. The definition states that consignment note should be issued by the transporter. If the transporter does not furnish the note to the recipient then the condition is not met and hence service tax is to be paid by transporter himself. Thanks . Reply By KIRAN KUMAR: The Reply: Thanks for the reply sir, ....
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....But he was providing monthly bill on his letter pad only and importantly there was no consignment note. In my view consignment note has contain serially numbered ,consigner & consignee name and material details which was transporting. But in our cause our own material transporting to goodown there was no consigner & consignee relationship. Service tax audit dept given a notice that if you paid fr....
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....eight you are liable to discharge service tax under RCM. Kindly provide your views and cause laws on this issue. Thanks in advance Reply By KASTURI SETHI: The Reply: Sh.Kiran Kumar Ji, What I understand that you mean to say that it is a self-service.(if there is no consignor or consignee as told by you). If it is self service, why the amount of freight has been paid ? Moreover, raising a bill....
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.... on a letter head is in violation of Service Tax law. If consignor or consignee is not a factory, company, corporation, society, co-operative society, dealer, any body corporate or a partnership firm registered under respective law, then Goods Transporter cannot go scot free. In that situation, Goods Transporter is legally bound to pay ST. It is a statutory duty of GTA (Transporter of goods by roa....
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....d) to issue consignment note. (Rule 4 B of Service Tax Rules, 1994 refers). Non-issuance of consignment note does not absolve Goods Transporter of liability of discharging ST. In a nut shell, in this way, I concur with the views of Sh.Ganeshan Kalyani, Sir.<br> Discussion Forum - Knowledge Sharing ....