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September 2008

Service tax levy on goods transport by road services — Circular No. 104/07/2008-ST, dated 6-8-2008.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Chartered Accountants
Reading Time 1 mins
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Part B : INDIRECT
TAXES


Service tax

68 Service tax levy on goods transport by
road services — Circular No. 104/07/2008-ST, dated 6-8-2008.

Certain clarifications have been provided by this Circular as
under :


  • Abatement of 75% would be available to the consolidated amount mentioned in
    the invoice which includes various intermediary and auxiliary services
    provided by GTA and included in the invoice, since these services are not
    provided as independent activities but are the means for successful provision
    of the principal service, namely, the transportation of goods by road.


  • Where service is provided by a person who is registered as GTA service
    provider and issues consignment note for transportation of goods by road in a
    goods carriage and the amount charged for the service provided is inclusive of
    packing, then the service shall be treated as GTA service and not cargo
    handling service.


  • In case of time-sensitive transportation of goods by road carriage, if the
    entire transportation is done by road and the person transporting the goods
    issues a consignment note, then the service would be GTA service and not
    courier services.



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