Reverse charge transporter

Querist : Anonymous (Querist) 24 September 2011 This query is : Resolved
What is the limit that the service recipient of the transporter should follow while paying service tax? Is it Rs. 1500 aggregate or Rs. 750 of one consignment or higher of the two. Suppose the per consignment is below Rs. 750 but overall it is greater that Rs. 1500. Will service tax be applicable then?. And is there any violation if the service tax amount is deducted from the transporter and then paid to the goverment?

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R.Ramachandran (Expert) 24 September 2011
The Notification No. 34/2004-ST dt. 3.12.2004 as amended by Notification No. 23/2008-ST dt. 10.5.2006 is quite clear on the subject.

If the transporter transports ONE consignment to "X" and the amount charged is Rs. 750/- it is exempted from service tax.

If the transporter transports MORE THAN ONE consignment to "X" and the gross amount charged for all the consignments put to gether does not exceed Rs. 750/- then also the service tax is exempt.

If the transporter transports ONE consignment to "X" and the amount charged is Rs. 751/- then service tax is payable.

If the transporter transports MORE THAN ONE consignment to "X" and the gross amount charged for all the consignments put to gether is Rs. 751/- then service tax is payable.

If the goods transport agency transports the consignments to various parties and if the total transport charges charged does not exceed Rs. 1500/- then service tax is exempt.

If the goods transport agency transorts the consignments to various parties and if the total transport charges charged is Rs. 1501/- then service tax is payable.

Sankaranarayanan (Expert) 24 September 2011
yes mr Ramachandran is explained well on this matter, i too aggree on it
according to section 65(105)ZZP clearly explained about it, If any trasporter collected the service tax from the client or consigneor then they have to pay it to the goverment trusery.
The trunover of business is less then 10 lacks then the business people are not come under the service tax collection and paying.
by the notification of service tax No 08/2008.

prabhakar singh (Expert) 24 September 2011
Nothing remains in doubt after Mr. Ramachandran answer.

Raj Kumar Makkad (Expert) 24 September 2011
I do agree with Ramachandran.

M/s. Y-not legal services (Expert) 24 September 2011
Useful information given by ramachandran sir.. Thank you..

Querist : Anonymous (Querist) 24 September 2011
My question is that if the service receiver is liable to pay the service tax then how will he able to calculate the limit of Rs.1500 which the GTA will provide to various parties. Is the service provider eligible to deduct service tax amount from the transporter and then pay it to the goverment

Raj Kumar Makkad (Expert) 24 September 2011
You quesion has very well been replied above.

Querist : Anonymous (Querist) 25 September 2011
The query is still unresolved since the difference between a transporter and goods transport agency is still debatable? The provisions of reverse charge are applicable to transporter or GTA?. The service receiver has to bear the service tax burden in which case? If the service is provided by GTA or by a transporter. The limits are understood in both cases but the applicability to the service receiver are not understood.

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