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Service Tax on Goods Transport agency

(Querist) 10 July 2008 This query is : Resolved 
Sometimes we receive material through tractor trolley and make the payment of freight to the owner of the tractor trolley but he does not issue any GR or even if he issues a GR. Are we laible to pay service tax on the freight amount paid to tractor trolley owner and can the tractor trolley be treated as goods carriage under the definition of Goods transported by road?
Guest (Expert) 11 July 2008
Tractors are specially designed vehicles mainly to cater to agricultural and related activities. I donot think this kind of vehicle is treated as a goods vehicle, I need to check the MVAct.
Baldev Dewan (Querist) 11 July 2008
Thank you Sir, but As per clause 14 of section 2 of the Motor Vehicle Act’ 1988 "goods carriage" means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods;
According to the said definition it is clear if if any vehicle not meant for goods carriage but used for good carrying will be treated as goods carriage. it means tractor trolley is fall under GTA.
As per section 2(28) of Motor Vehicle Act’1988, Motor Vehicle or vehicle means-

“Any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from external or internal source and includes a chassis to which a body has not been attached and a trailer, but does not include a vehicle running upon fixed rail or vehicle of a special type adapted for use only in a factory or any other enclosed premises. Whereas

As per section 2(44) of motor vehicle Act’ 1988 "tractor" means a motor vehicle which is not itself constructed to ; carry any load (other than equipment used for the purpose of propulsion);

on the other hand at the time of purchase of tractor authority does not charge any road tax which means it can not carry load or can not be oprated as commercial vehicle.
Please look into it.
Guest (Expert) 11 July 2008
Thank you for the clarifications. Hope you have the answers. Keep the forum live with ST questions.

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